
i e n 



REPORT 



Senate Committee to Investigate the 
Methods and Practices, Expenses 

/ ^ 

and Disbursements of the 
Public Schools 



MARCH, 1911 



TRENTON, N. J. 
MacCrgllish & QuiGLBv, Statb Printers. 



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REPORT. 



To the Senate of the State of Nezv Jersey: 

In 1909 the Senate appointed the undersigned Senators to act 
with the State Board of Education as a Committee to investigate 
the methods and practices, expenses and disbursements of our 
public schools. ' . 

In 1910 the Committee was continued. In both years the 
State Board of Education selected Samuel St. John McCutchen 
of Plainfield, William H. Morrow of Belvidere, and William 
G. Schauffler of Lakewood, to act as its representatives. 

In 191 1 the Senate continued the Committee, substituting, 
however, for the State Board of Education, Messrs. McCutchen, 
Morrow and Schauffler. 

Such Committee respectfully submits the following report : 

During 1909 numerous written questions were prepared and 
submitted to' the Principals, Superintendents and Boards of Edu- 
cation throughout the State. The object of these questions was 
to obtain information about: 

The revenues of the school districts, the sources from 
which they were derived, the objects for which they were 
disbursed and the care exercised in their management and 
disbursement. 

The land devoted to school purposes, the methods pur- 
sued in its purchase, the buildings thereon, the practices 
followed in and about their construction, their present 
condition and the insurance upon them. 

The character of text-books and supplies and the meth- 
ods employed in their purchase and distribution. 

The attention given to the physical condition of the 
children and to what extent, if any, they were examined 
by physicians. 



The character of the intellectual training and the 
courses of study and whether or not any kind of uniform- 
ity prevailed. 

The provision, if any, made for children who, because 
of physical or mental defects, are below the normal. 

The supervision given by school directors to Superin- 
tendents, Principals and Teachers, by Superintendents to 
Principals and Teachers, and by Principals to Teachers 
and pupils, and 

To secure suggestions from those who were in daily 
contact with our schools. 
The questions were framed sO' that in some measure the an- 
swers of Principals would serve as a check upon those of the 
Superintendents and Boards, of Superintendents upon Princi- 
pals and Boards and of the Boards upon Superintendents and 
Principals. One thousand one hundred and nine (1,109) ^^^^ 
of answers were received, the majority before March, 1910. 
Most of them were complete, and in many valuable suggestions 
were made. The information and suggestions so received were 
such that they, coupled with requests from different parts of the 
State, led the Committee to the conclusion that public hearings 
were necessary. 

Such hearings have been held in every county in the State and 
fifty-two (52) school districts have been publicly investigated. 

In almost all districts complaint was made that the State was 
gTjilty of undue delay in the distribution of funds. Thorough 
public examinations were therefore made of the acts of the State 
Treasurer and Comptroller and of the Trustees of the School 
Fund. 

The Committee also held public sessions, at one of which it 
examined twelve (12) of the City Superintendents; at another 
all of the County Superintendents and at another the State Su- 
perintendent and some of the members of the State Board of 
Education. 

In all sixty-two (62) public hearings have been held, and five 
hundred and sixty-three (563) witnesses sworn and examined. 
The testimony has been reduced to writing and consists of five 
thousand four hundred (5,400) typewritten pages. Such testi- 



mony is submitted herewith, as are also the one thousand one 
hundred and nine (1,109) sets of written answers received from 
Boards of Education, Superintendents and Principals. It is upon 
such testimony and written answers, supplemented by the per- 
sonal observation of the Committee, that this report is based. 

To give a detailed review of all the evidence would so extend 
the volume of the report that but few would have the patience to 
read it. It wi^ll, therefore, be our object to explain as tersely as 
possible, conditions as we find them, to- point out evils which 
exist or have existed, occasionally giving illustrations, and to 
make recommendations, the adoption of which we believe to be 
desirable. 

The school year commences July i , and closes with the follow- 
ing June. The amounts expended by the local Boards for gen- 
eral school purposes as distinguished from building and im- 
provement purposes during the year beginning July i, 1909, and 
ending June 30, 19 10, aggregated $12,259,8168.58. Of this 
amount $7,652,981.53 was paid over by the State, and the bal- 
ance represented moneys which were raised by the different school 
districts. Some few districts are now maintaining their schools 
with the funds which they receive from- the State. Nearly all, 
however, find it necessar}^ tO' raise additional funds. 

Some time prior to the close of the school year, the various 
Boards of Education estimate the amount which they deem 
necessary for the ensuing year. From this amount they deduct 
what they expect to receive from the State and they request 
their school district to raise the difference by local taxation, 
Tbe request is generally granted. Local taxes, however, are 
not collected until December, and it is January, and sometimes 
February, before moneys so acquired are paid to the local Boards. 
Usually the local appropriation is paid over with reasonable 
promptness, irrespective of whether the total tax has been paid 
or not. There is, therefore, little or no complaint by the various 
Boards that they do not receive moneys raised locally within a 
reasonable time after their collection. There is, however, al- 
most universal complaint that the State is undu,ly slow in the 
distribution of its funds, and that, because of its delay, the school 
districts find it necessary tO' borrow money, and generally at 6 



per cent., to enable them to maintain the schools during the 
first six months of the school year. Such universal complaint, 
urged in some districts with considerable vigor, merits careful 
consideration. 

In view of the belief entertained by many that the sources 
from which the State derives the funds which it distributes for 
school purposes are sacred and inviolable, it may be well at the 
outset to call attention to the fact that this belief is not well 
founded. It is the duty of the Legislature to provide for the 
maintenance and support of a thorough and efficient system of 
free public schools. With one exception the Legislature may 
exercise its discretion as to what funds should be used in the 
performance of this duty imposed upon it by the Constitution. 
That exception is the income from the State School Fund. That 
income the Constitution commands shall be annually appro- 
priated to the support of the free public schools. Aside from 
such income the Legislature may, from time to time, make such 
changes in the sources of school revenues as to it may seem 
proper. 

The money annually distributed by the State among the school 
districts is made up as follows : 

A. Of at least $100,000 paid out of the Treasury. 

B. Of the State school tax, 

C. Of $200,000 derived from the income earned upon the 

State School Fund, 

D. Of a certain part of the Railroad tax, 

E. Of an amount equal to the funds raised in the districts for 

manual training. 

THE $100,000 APPROPRIATION AND THE STATE SCHOOE TAX. 

The $100,000 paid out of the Treasury and the State School 
Tax may be considered together. 

Section 177 of the School Law provides that there shall be 
annually appropriated from the State Treasury a sum not less 
than $100,000. which shall be apportioned among and paid to 
the several counties in the proportion that the ratables of each 
county shall bear to the total ratables of the State. 



The same section also provides that a State School Tax shall 
be annually collected, the amount to be such as will make, when 
added to the appropriation from the Treasury, a sum equal to 
2% mills on each dollar of valuation oi the taxable real and 
personal property in the State. 

Prior to the ist of February in each year, the State Comp- 
troller appoTtions the tax among the several counties, and after 
action by the County Collectoirs and local Assessors it is assessed 
and becomes due and payable before the close of the year. By 
§178 it is made the duty of the County Collectors to pay to the 
State Treasurer on or before the 20th day of January following 
the assessment the quota of the State School Tax from his 
county. 

Section 179 provides that lOi per cent, of the State School 
Tax shall be known as a reserve fund and shall, on or before 
the 15th day of February in each year, be apportioned among 
the several counties by the State Board of Education equitably 
and justly according to its discretion. 

In the same section it is provided that the State Superintendent 
shall, on or before the 15th day of January next ensuing the 
apportionment, draw an order on the State Comptroller in favor 
of each County Collector for 90 per centum of the amount of 
the tax paid by him to the State Treasurer. In such section it 
is also provided that the State Superintendent shall draw his 
order in favor of each County Collector for such portion of 
the reserve fund as shall have been apportioned to his county, 
which order shall be payable when the total amount of the 
reserve fund shall have been received by the State Treasurer. 
The entire reserve fund is usually in the Treasurer's office on 
January 20th, because by §178, County Collectors are obliged to 
pay the entire tax due from their counties on or before that day. 

The State School Tax has been made the subject of attack in 
a few districts. In behalf of Weehawken a carefully prepared 
brief has been submitted to us. It is claimed that the law is 
complicated and difficult to understand. It is. At first it 
seemed to some of the Committee that it was not made the duty 
of any State official to disburse the tax until one year after it 



8 

was received. This opinion was formed, because it is made the 
duty of the County Collectors to pay on or before the 20th of 
January and of the State Superintendent to issue orders for the 
distribution of 90 per cent, on or before the 15th of January. 
On what theory it was made the duty of the Superintendent to 
issue orders for the distribution of a tax before it was paid, 
we do not know. On first reading, it would occur to many that 
January 15th meant in the year following- payment. A careful 
reading shows that such is not the intention. Even if there 
were ambiguity, the statute has received a practical construc- 
tion by State officials which results in the distribution of 90 per 
cent, of the tax immediately upon its receipt. The law might 
be made clearer in some respects, and doubtless will, when all 
our Tax Laws are made the subject of a careful and scientific 
examination. It is also urged that the Law is unnecessary, 
because the State turns back to the County Collectors substan- 
tially the entire amount received from them. If the Legislature 
was not charged with the duty of providing a thorough and 
efificient system of public schools, there would be good reason 
for insisting that each county, or in fact each district, should 
raise such funds as its citizens deemed necessar\^ for the kind 
of schools which suited them. The Legislature has no assurance 
that each district would raise for school purposes an amount 
equal to the State School Tax. In fact this Committee is con- 
vinced that some would not and that their schools would soon 
be anything but thorough and efficient. We cannot, therefore, 
recommend the repeal of the law. Home rule for each district 
as to amounts to be raised and disbursed and the kinds of 
schools to be maintained cannot well be urged without an 
amendment to the Constitution. Changes in the method of 
distribution are also suggested. No complaint has been made 
that each county does not receive back substantially all that it 
pays. Vigorous complaint is made that the method of distribu- 
tion within the county is unfair and that some districts receive 
much more than they pay and some much less. 

Weehawken furnishes a striking illustration. There is re- 
turned to it about 72 per cent, of the State School Tax which it 



pays, while the adjoining districts of the Town of Union, North 
Bergen and Guttenberg receive approximately i6o. 174 and 216 
per cent, respectively oi what they pay. As complaints of this 
kind have been made by more districts in regard to the Rail- 
road Tax, we will consider the matter in that connection. 
Suffice it to say, in passing, that we do not believe that anyone 
ever has devised or ever will devise a system of taxation which 
will result in a pecuniary return to each community exactly 
commensurate with the amount paid. The problems of taxation 
are very difficult and no doubt will sooner or later be made the 
subject of scientific study in this State. For our part we are 
not prepared to recommend any change in the State School Tax 
or in the method of collectinp- and disbursingf it. 



'& 



In §iSi it is made the duty of the County Collector to receive 
and to hold in trust that part of the State appropriation and 
State School Tax apportioned to his county and to pay the 
same on the order of the County Superintendent to the custo- 
dians of the school moneys of the several school districts of his 
county. 

By this section it is within the power of a County Superin- 
tendent to delay the distribution among the local school districts 
even after the Collector of the county in which such districts are 
located has actually received the money. 

Complaint has been made to your Committee that in one of 
the counties of the State the County Superintendent has this 
very year delayed the delivery of orders upon the County Col- 
lector. Such delay, whether intended or not, accrues to the 
advantage of the bank which has on deposit the funds received 
by the County Collector. 

This Committee believes that it should not be within the 
power of the County Superintendent to favor a banking institu- 
tion to the extent which §181 permits. 



10 

First Recommendation. Section igi should be amended so 
that it shall be made the duty of each County Stiperintendent to 
deliver Orders in favor of districts that have paid their School 
Tax and have complied zvith the law as soon as his County Col- 
lector has received moneys from the State, and so that it shall 
be made the duty of the County Collector to honor such orders 
without delay. 

THE STATE SCHOOL FUND. 

With regard to the State School Fund, complaints were made 
to your Committee, substantially to the effect that when the 
Trustees of the School Fund purchased bonds directly from 
school districts, they paid only par, whereas to brokers they 
always paid more than par, and that certain brokers were unduly 
favored. These charges were carefully investigated. 

The State School Fund is under the control and direction of 
the Governor, the Attorney-General, the Secretary of State, the 
State Comptroller and the State Treasurer, who by § i66 of the 
School Law are constituted a Board of Trustees of the Fund. 

On October 31st, 1910, the Fund was invested as follows: 

Bonds, $3,942,480 00 

Stocks, 146,500 00 

Bonds and Mortgages 280,793 33 

Riparian Leases, 459,516 63 

Real Estate, 19,438 44 

Cash in Bank, 472,779 98 

Total ; $5,321,508 38 

Section 170 of the School Law provides that moneys belong- 
ing to the School Fund shall be invested by the Board in the 
bonds of the several school districts of the State, or in bonds of 
the United States, or of this State, or in bonds of any county, 
city, incorporated town, township or borough of this State, the 
total indebtedness of which shall not exceed in the aggregate 
15 per cent, of the total assessable valuation of all taxable prop- 
erty therein. 



II 

The Committee obtained a list of all bond purchases by the 
Trustees during recent years. 

With such information before it, three public hearings were 
held and we find that almost one-fourth of the bonds held by 
the Trustees at the close of the last fiscal year were sold to them 
within the past six years by or in behalf of two individuals. 
No doubt such sales were effected because their offerings were 
the best at the time of their acceptance. Whether, however, 
they made the best offerings because they had the most intimate 
knowledge as to when the Trustees would make investments, or 
because they had knowledge of the offerings made by other 
brokers, this Committee is not prepared to say. Some of the 
circumstances attending sales, however, were such that the pro- 
cedure should be entirely reformed. A few illustrations mav 
serve to indicate the character of the evidence which was 
adduced. 

Though we dislike to mention names in our report, still from 
our experience it would seem as though practices which to us 
seem improper can bg checked only by publicity. 

In 1906 the Board of Education of the town of Guttenburg 
advertised for sale $53,900 of bonds. Several bids were re- 
ceived, all slightly above par. They were rejected upon the 
ground that they were too low. 

In May, 1907, R. M. Grant & Co. offered to sell the issue 
to the Trustees at 110.79. I^'^is offer was made before Grant 
& Co. ever made any formal offer to the Guttenberg Board of 
Education tO' buy. The Trustees agreed to buy ten at 110.79. 
Three weeks later, Grant & Co. made a formal offer to the 
Guttenburg Board to buy the entire issue at par. Their offer 
was accepted. They never took the entire issue, but succeeded 
in obtaining ten, for which they paid only $9,101.00. Why only 
ten were delivered, and why less than par was paid, was not 
clearly disclosed, chiefly because those who must have known 
the reasons either could not, or what is more likely, would not, 
remember. What, however, was more surprising was that the 
Trustees waited from May, 1907, until December, 1907, for the 
ten bonds which they agreed to buy from Grant & Co. 

In December, 1907, the Trustees accepted the ten bonds, pav- 



12 

ing Grant & Co. $11,076, almost $2,000 more than they had 
paid to the Board of Education of Guttenburg. A few months 
later, the Mayor of Guttenburg tried to sell the balance of the 
bonds to the Trustees. The Trustees agreed to take and did 
take twenty, not, however, at 110.79, the price paid by them 
to Grant & Co., but at 106. 

During 1905 the Trustees purchased eight lots of School 
Bonds, the aggregate par value of which was $155,650. Two lots 
aggregating $28,500 were purchased directly from school dis- 
tricts and part paid therefor. Six lots, aggregating $127,100, 
were purchased from brokers and from a bank, and par plus pre- 
miums ranging from 2.15 to 11.8 paid therefor. One lot amount- 
ing to $20,000 at 102^ was purchased from a well-known bond 
house, Messrs. Parson Leach & Co. Two lots, one of $28,150 
at 104, and the other of $18,000 at 105, w^ere purchased from 
W. E. Jackson & Co. Xo sale was made by this hrm prior to 
1905, and none was made after 1907. We were unable to 
locate Mr. Jackson. It appears, however, that at one time he 
was an employe of Mr. Howard Stokes, and that he and Mr. 
Stokes were, during some period which the latter could not 
recall, engaged in business under the name of W. E. Jackson 
& Co. 

Of the remaining three lots, two were sales in the name of 
The Merchants National Bank of Newark, and consisted of 
$20,000 at 104.33, ^^'^^ $18,000 at 102.15; the third was in tlie 
name of Eisele & King, and consi-sted of $23,000 at 1 1 1.80. The 
bonds sold in the name of The Merchants National Bank, were 
bonds held by it as collateral for loans to Howard Stokes, and 
the proceeds of the bonds were credited to his account. The 
bonds sold in the name of Eisele & King were bonds of the Town- 
ship of Teaneck, which had been purchased bv W. E. Jackson 
& Co. Whether Jackson & Co. sold to Eisele & King, or 
whether the sale in the name of Eisele & King to the Trustees 
was for Jackson & Co., the Committee cannot say. 

It also appears that at some period Mr. Howard Stokes and 
Mr. R. E. Grant were co-partners. 

During 1905, '06 and '07, sales of bonds to the Trustees by 
Grant & Co., and of bonds in which Mr. Howard Stokes appears 



13 

to have had some interest, aggregate approximately $700,000. 
No sales were made by Mr. Stokes in his own name during those 
yiears, but comimencing in 1908 Jackson & Co. disappear from 
the list of vendors, and Mr. Howard Stokes appeared. If Jack- 
son & Co. had been a well-known bond house, and if it were the 
custom for banks to repeatedly make sales tO' the Trustees, their 
suspicion would probably not be excited by the fact that so many 
sales were effected by them. As, however, Jackson & Co.'s 
existence seems to correspond with the three years, 1905-06 and 
'07, and as it was not usual for banks to make repeated sales 
to the Trustees, it would seem; as though they should have made 
some inquiries. The fact is that a party in interest in such sales 
was a brother of one of the Trustees. 

We believe that it is the dutv of each Trustee to^ fully inform' 
himself about all purchases, and that he cannot leave the responsi- 
bility to some other member. If he could, there would be no 
advantage in having more than one Trustee. What inquiries, if 
any, were made by each of the Trustees we do' not know, as all 
were not examined. Whether incjuiries were made by any does 
not appear. 

During the years 1908, '09 and '10, purchases from Grant & 
Company, and from Howard Stokes, and from third parties, of 
bonds, in which the Committee believes Mr. Howard Stokes had 
somje interest, bring the total purchases from these two sources 
for the six years commencing with 1905 and ending with 19 10 
to at least $1,000,000. It has not been possible to ascertain the 
profit made by the brokers, but from such figures as we have 
been able to obtain we estimate that it was at least $60,000. 

The Committee has been unable to find any satisfactory ex- 
planation as to why, when the Trustees purchased directly from 
th& Boards of Education, they paid only par, whereas when they 
purchased from brokers they always paid more than par. 
Neither has it been able to find any satisfactory explanation as 
to why SO' many sales were effected by or in the interest of two 
brokers. If the two were among the largest bond brokers in the 
country, we might assume that it was because they had many 
more issues to sell and naturally miade the largest number of 
sales. Such an explanation, however, cannot be made, especially 



as we find that one of them, for soiiie time past, has been devot- 
ing- a great part of his time to work other than the sale of bonds. 
Possibly the method in which inirchases of bonds are made may 
offer some explanation. It appears that the Clerk of the Trustees 
of the School Fund keeps a list of thirty-two (32) bond brokers. 
When money is ready for investment he sends notices at times to 
all and at other times only to some on his list. Bids are received 
by him' through the mail or personally. There is not and does 
not appear to have ever been s.ny definite and stated time and 
place when all bids would be opened so that all bidders could be 
assured that there was no' undue favoritism or that noi one bidder 
was able to learn the figures of those preceding him. It may well 
be that no bidder has received infoTmation as to what others have 
bid, and it may well be that it is through inadvertence that some 
bond brokers are not always notified when the Trustees are ready 
to invest funds. The practices which are pursued, however, are 
such as tO' lend themselves very readily to unfair dealing and 
naturally to excite suspicion. We cannot understand how it is 
that the Trustees, during the past six years, have always paid 
brokers more than par and school districts only par, and have 
made so many purchases from a few brokers without having had 
their suspicions aroused as to whether they were acting for the 
best interests oi the State. While we regret tO' say it, we l>elieve 
that the Trustees, during the past six years, have not exercised 
that care and caution which the ordinary prudent business man 
would in the management and investment of his own funds. 
Methods which lend themselves to favoritism, if people are in- 
clined to show undue preference, should be stopped. 

Second Recommenadtion. The Trustees of the School Fund 
should encourage sales directly by school districts so as to save 
the profit zvhich is usually made by brokers. It should be made 
their duty to buy directly from school districts whenever possible. 
When funds for investment amount to $100,000, it should be 
their duty to advertise in a leading financial paper to the effect 
that bids zvill be received at a certain time and place. All bid si 
should be received in sealed envelopes at such time, and all should 
be opened in the presence of the bidders and forthzvith posted so 



15 

that each bidder can see every hid. The Trustees should have a 
reasonable time to study the offerings and they should have dis- 
cretion as to zvhich to accept, but when they select one that is not 
the best in price they should briefly state in zvriting their reasons. 

In the event of any school district offering to sell directly, 
before the bid of any broker has been accepted, it should be zvithin 
the power and discretion of the Trustees to accept such offer if 
they deem it wise so to do. No purchase, except at par, from 
school districts, should be permitted unless there has been adver- 
tising for bids. 

All bonds zvhich may hereafter be purchased, as zvell as all 
bonds zvhich have been purchased, should be registered in the name 
of the Trustees, and the fact ihat the Trustees are the ozuners 
should be endorsed upon them, so that in event of loss they zmll he 
non-negotiable. 

Tvvoi hundred thousand dollars of the income of the State 
School Fund was distributed among the County Collectors in 
Februaiy O'f last year. Section i8o of the School Law provides 
that the State Comiptroller shall draw his warrant on the State 
Treasurer in favor of the County Collector oi each county for 
the portion of the income O'f the State School Fund to^ which the 
county shall be entitled whenever the County Collector shall 
present an order for the same, drawn by the State Superintendent 
of Public Instruction. We find no provision making it the duty 
of the State Superintendent to issue orders in favor oi the 
County Collectors at any stated tim..e or when the income shall 
amount to any given sum.' The time when the order shall be 
made by the Superintendent should not be left tO' his discretion. 
The State School Fund is now in such condition that $200,000 
oi incom'e can be safely distributed in January of each year. 

Third Re;commbndation. Section iSo should be amended 
so as to make it the duty of the Superintendent of Public Instruc- 
tion to issue his order in favor of each County Collector on or 
before the fifteenth day of lanuary, in each year. 



i6 



THK RAILROAD TAX. 



In 1906 the Legislature enacted a law (Chap. 146) wherein it 
is provided that after deducting a sum equal to one-half of one 
per cent, of the total valuation on the property described in Subds. 
I, 3 and 4, of section 3 of the Railroad Tax Act, the total tax 
on such property shall be devoted to^ the maintenance and sup- 
port of the schools, and that the same shall be appo<rtioned an- 
nually among the counties by the State Comptroller in proportion 
tO' the amount of taxable real and personal estate O'f the counties. 
This tax is that levied and collected upon the main stem of each 
railroad and the waterway O'f each canal and upon the franchise 
and tangible personal property of each railroad and canal com- 
pany. The statute defines the main stem as including the road 
bed not exceeding 106 feet in width, with its rails and sleepers, 
and depot buildings used for passengers connected therewith, 
while it defines the term waterway as including the towing path 
and the berme bank. 

In a few districts complaint has been made that the State does 
not return the full amount of the railroad tax collected upon 
railroad property within it. These complaints we have carefully 
considered. It is tme that some districts do not receive as much 
of the railroad tax as is collected upon the property within them. 
It is also true that some receive more. It is even true that some 
receive a share of the tax though no railroad property is located 
within their borders. The education of our children, however, is 
a duty of the State. The people have" imposed on the Legislature 
the dutv of pro\'i(ling for the maintenance and support of the 
schools. There is nothing in the Constitution which would pre- 
vent the Legislature from repealing Chapter 146 of the Laws 
of 1906, and the Railroad Tax now applied to the schools would 
again become applicable to general State purposes. In fact there 
are as many who urge that this Railroad Tax should be general 
funds applicable to any State purpose as there are who urge that 
it is not fairly distributed. If the Railroad Tax became a part of 
the general State funds the appropriations by the Legislature in 
lieu therefor would be not from any specific fund, but from gen- 



17 

eral funds. The districts which now complain would then, no 
doubt, assert that they pay more to the State than they receive in 
return. Complaints of that nature, however, can be made by any 
ward in a city, by any part of each county, by each county in the 
State, and by each State in the Union. There is no doubt but 
that some districts are benefited by the Railroad Tax and also 
by the State School Tax collected upon railroad property in other 
districts. There is also no doubt but that some oif the wealthier 
and more popijlous communities contribute tO' the support of the 
schools of the poorer and more sparsely settled. 

It is equally true that business sections in the larger cities con- 
tribute to the support of the schools of the entire city an amount 
entirely out of proportion to their school population. So' long 
as there is any government, the richer communities will con- 
tribute to the support of the poorer. To distribute the Railroad 
Tax and such share of the State School Tax as is collected upon 
railroad property only among the districts in which railroad 
property is located and in proportion to the amount within them, 
would deprive many rural communities of part of their present 
revenues. No doubt the present system works apparent ine- 
quality in Hudson county where there are no rural districts. If 
any change is made, it would have to be uniform throughout the 
State. Any change which would relieve certain districts in Hud- 
son county from bearing some part of the expense of other dis- 
tricts would deplete the revenues of the rural districts. Inas- 
much as we find that the schools requiring most help are those 
in the rural sections, we will not recommend any change in the 
distribution of the Railroad Tax. In reaching this conclusion 
we have been influenced by two additional considerations : one, 
that the inequality in distribution results not so much from taxes 
paid by individuals, but chiefly, if not entirely, from taxes de- 
rived from quasi-public corporations. There is little or no com- 
plaint that each district does not receive back an amount equal 
to that paid by individuals. The inequality has arisen chiefly 
because in the districts that complain there is a large amount of 
railroad property. The other consideration is that the taxation 
problem is one which cannot well be studied piecemeal. The 
entire question should receive careful and scientific examination. 

2 



i8 

Under the present system the schools are assured of their por- 
tion of the Railroad Tax. If that portion were turned into the 
State Treasury, there is no assurance that an equal amount would 
be appropriated in lieu thereof. We believe that certainty is far 
better tlian uncertainty, and we are opposed to the repeal of 
Chapter 146 of the Laws of 1906. 

The appropriation of a part of the Railroad Tax to the main- 
tenance and support of the schools made necessary some study 
and examination by the Committee in regard to the tax and the 
time and manner of its collection and distribution. 

The law provides that if a Railroad Corporation pay the tax 
applicable to county and local purposes before the ist of Feb- 
ruary, following the levying thereof, it may pay the State Tax 
in four equal installments on or before the ist days of February, 
May, August and the 15th day of October. To make this clear, 
it may be well to contrast the difference between the time of pay- 
ment of taxes of Railroad and Canal Companies and those by 
the ordinary taxpayer. The latter are compelled to pay in De- 
cember of each year; the former are given until the following 
February to pay the portion of the tax applicable to county and 
local purposes, and if they make such payment on or before the 
1st of February, as they usually do, then they have practically an 
entire year to pay their State Tax. 

Why there should be any distinction in taxation between in- 
dividuals and Railroad and Canal Companies we have not been 
able to discover. It may, perhaps, seem outside of the functions 
of this Committee to make any criticism upon this subject. In- 
asmuch, however, as the greater part of the State Railroad Tax 
is devoted to school purposes, the Committee believes that it 
comes within the scope of its duty to point out that there is no 
reason why any class within the State should have a longer time 
to pay its legal obligations than any other class. 

To illustrate the present system of collection and distribution, 
the Railroad Tax assessed for the year 1909 will be taken as an 
example. If that tax became due and payable at the time when 
individuals arc required bv law to pay their taxes, the State would 



have received the whole or the greater part of it prior to the 31st 
day of December, 1909. Instead, the State received it in four 
quarterly installments: on February ist, May ist, August ist 
and October 15th, 1910. On October 31st, 1910, that is the close 
of the State fiscal year, the State had received the entire tax with 
the exception of $9,768.54. The amount actually received by 
the State was $3,715,334.60. Of this amount $2,426,930.81 was 
allotted to the schools. Even assuming that the amount unpaid 
by the railroads should be deducted from the school allotment, 
the State had in its possession on the 31st day of October, 19 10, 
approximately $2,417,000, impressed with a trusPfor the benefit 
of the schools. 

This vast sum is still undistributed. Chap. 63 of the Laws of 
1909 provides that it shall be distributed in two equal install- 
ments, on April 15th and June 15th, 1910. The greater part of 
the $2,417,000 has been in the possession of the State since 
August 1st, 1910, and had a distribution then been made of the 
money in hand, and had a further distribution been made on or 
before October 31st, many, if not all the school districts, would 
have been relieved of the necessity of borrowing money between 
July ist and December 31st. 

Fourth Recommendation. There should be no distinction 
among the taxpayers of the State. Even should no change be 
made in the tax lazv, the State shoidd distribute on September 
ist in each year such part of the Railroad Tax then in hand as 
has been allotted to the schools, and on or before October sist 
in each year the balance of the allotment collected to that date. 
If the entire tax has< not been paid by October ^ist, the part re- 
maining unpaid should be distributed ivhen collected. 

STATE DEPOSIT OF SCHOOL MONEYS. 

The fact that on October 31st last the State held $2,417,000 
of moneys derived from the Railroad Tax and allotted to the 
support of the schools, and that no part of such amount would 
b° disbursed until April 15th, 191 1, led the Committee to inquire 



20 

about all State school moneys and the interest received upon 
them. On that same date the Trustees of the School Fund had 
in cash in the investment account of the School Fund $473,000, 
and in the income account $191,000. Why there was such a 
large balance in the investment account, earning only 2 per cent, 
interest, is not clear. It, as well as the $191,000, was on deposit 
in a bank where such balances have been kept for many years 
past. Though it is true that the Treasurer designates the de- 
positories of School funds as well as of State funds, still we 
believe that with regard to the former he naturally defers to the 
wishes of the Trustees. We find that School moneys have been 
deposited in banks with which Trustees have been connected as 
officers, directors or stockholders. It is and always has been 
good law that no man can serve two masters. Where a person is 
a Trustee and at the same time an official of a bank having a 
deposit oi any part of the State School Fund, there is a clear 
conflict between duty and interest. As a Trustee it is his duty 
to keep all funds invested and to- lose as little as possible in the 
way of income. As an official of the bank it is to his interest to 
have balances as large as possible. We do not say that any 
Trustee used his position to promote his own interests or those 
of any bank with which he was connected. We do say that no 
such risk should be incurred in the future. 

Fifth Recommendation. No school moneys should be de- 
posited by the State in any bank of which a Trustee of the School 
Fund is an officer, director or stockholder. 

If to the cash in the possession of the Trustees on October 
31st last is added the $2,417,000 of the Railroad Tax then in 
hand and allotted to the schools, the result will be $3,081,000. 
Where was all this cash and what interest was received upon it? 
The $2,417,000 was mingled with other State moneys and was 
distributed among banks throughout the State. In the bank in 
which the School Fund moneys were deposited the combined 
balance to the credit of the Trustees and of the State on October 
31st, was $1,484,425.81, an amount greatly in excess of its capital 
and surplus. 



21 

Inasmuch as $2,417,000, the schools' share of the Railroad 
Tax, was received by October 15th, and as under the law no 
part of it would be distributed until six months later, inquiry- 
was made as to what interest was being received upon it and 
what efforts had been made to obtain the best possible rate. Two 
(2) per cent, is being received upon it, and no efforts were made 
to secure a better rate, because, it was explained, even if some 
banks would pay a better rate, the State could not accept more. 
An examination of the statutes disclosed that in 1902 a law was 
enacted authorizing the Treasurer to make deposits in such 
banks as he might select at a rate of interest "not exceeding 2 
per cent." Some suggestion was made that such a provision was 
intended for the protection of the Treasurer, as otherwise he 
would be annoyed by small and weak banks offering to pay high 
rates. 

Sixth Recommendation. The law should be repealed and 
one enacted prohibiting the State Treasurer from depositing zvith 
any bank funds under his control exceeding jj i/j per cent, of 
its capital and surplus. In the bank zuhere the active account 
is kept the Treasurer should be permitted, zvhen necessary in 
the collection or distribution of funds, to make deposits exceeding 
33 ^/ 3 P^'>' cent, of its capital and surplus, but in no event ex- 
ceeding its capital and surplus. Such excess over jj j/j per 
cent, should not be maintained for a longer period than one zveek. 
Among banks of equal strength, preference should be given to 
those zvhich zvill pav the best rate of interest. School moneys 
should be segregflted and placed separate and apart from State 
moneys zvithin five days after their receipt. The $2,41^,000 of 
the Railroad Tax nozv^ on deposit zmth various banks should be 
paid forthzvith to the schools. 

From our examination we find that the complaint is well 
founded that the State is unduly slow in the distribution of 
school moneys, and that, as a result, the school districts are com- 
pelled to borrow, usually at 6 per cent. The practice pursued 
by the State results in an annual interest charged to the dis- 



tricts of at least $125,000. What is worse, the schools have 
never been given credit for the interest on the Railroad Tax 
allotted to them. That interest, which amounts now to at least 
$30,000 a year, the State appropriates to its own use. The pres- 
ent system is an admirable one for the banks of the State, as it 
enables them to loan the school districts their own money. In 
the past, owing to litigation about the Railroad Tax, there was 
probably reason for delay in making a distribution. As there 
is no longer any reason for delay, distributions should l>e 
promptly made. The law should be framed for the benefit of 
the schools rather than the banks, and it is with that end in view 
that we have made the above recommendations. 



BOND ISSUES. 

The moneys received by the school districts from the State 
and those received from the District School Tax are devoted 
to general school purposes. To secure funds for the purchase 
of land, the erection and furnishing of buildings and for addi- 
tions, repairs, alterations or improvements, bonds are issued. In 
cities such bonds are issued by the municipality. In the major- 
ity of the school districts, however, i. c, in the towns, townships 
and boroughs, they are authorized by the legal voters at the 
annual or at a special school meeting held pursuant to public 
notice. When so authorized, they are issued in the name and 
under the seal of the district, and they are signed by the Presi- 
dent of the Board of Education and attested by the District 
Clerk. Such bonds as well as the school bonds issued by the 
cities may be sold at public or private sales at not less than par. 

In some districts, advantage is taken of the provision permit- 
ting private sales. In fact, some brokers when thev learn that 
a school district proposes to issue bonds, immediately commence 
negotiations for their purchase. It has been urged upon the 
Committee that purchases have been made by brokers who liaAe 
had reason to believe that the Trustees of the School Fund 
would in turn buy the whole or some part of the issue from them. 
From what we have heretofore stated, it is clear that brokers 



23 

frequently re-sell to the Trustees some of the bonds which they 
purchase from the districts. In some instances the dates o£ 
purchase and re-sale were sO' close as to excite suspicion. In the 
Guttenburg case, to which attention has heretofore been called^, 
the formal offer by the broker to sel^l to the Trustees actually 
antedated his formal offer to buy from the district. Where the 
purchase by a broker from a district was closely followed by his 
sale to the Trustees, it would seem as though, had the Trustees 
displayed as much zeal in the interest of the schools as the 
brokers displayed in the pursuit of their business, the income 
of- the School Fund would not have been depleted by the profits 
made by brokers. The Trustees had equal — in fact, better — means 
of knowing that districts proposed to issue bonds, because the 
proceedings relating to their issue are, in accordance with the 
law, always submitted for approval to the Attorney-General, who 
is one of the Trustees, and a certified copy of the proceedings 
filed in the office of the State Superintendent. 

There has been carelessness, we might even say gross negli- 
gence, if not actual dishonesty, connected with some issues of 
bonds. The evidence upon such and other matters connected 
with school moneys and their disbursement is striking proof that 
the people rarely receive any better government than they desire. 
In the majority of the school districts, bonds are authorized by 
the legal voters at the annual or at a special school meeting. It 
is fair to assume that if the voters do not take enough interest 
to vote at the school meetings for the election of members and 
the expenditure of moneys, they take no interest in the acts of 
the members. Throughout the State we find that comparatively 
few voters take any interest in school elections. It is not un- 
common for members to be elected at a meeting at which not 
five per cent, of the voters exercise their right to vote. Neither 
is it unusual for large issues of bonds to be authorized at 'a 
school meeting at which not even ten per cent, of the voters cast 
their ballots. By way of illustration O'f evils which it is very 
difficult to prevent by legislation and for the existence of whichi 
the legal voters are really to blame because of their indifference,, 
we will refer to the issue by West New York in 1907 of bonds; 
of the par value of $105,000. 



24 

In July, 1907, the Board adopted resolutions to the effect that 
$105,000 would be required for the purchase of land and for 
the erection and furnishing of a new school-house. A special 
meeting of the legal voters was called. At the time there were 
approximately 1,700 legal voters in the district. Only 131, less 
than 10 per cent., voted. Of that 131, 117 voted in favor of the 
proposed plan of the Board. In August, the Board advertised 
for bids on the bonds, the interest on which was 5 per cent. 
None was received, owing no doubt to the financial depression 
then existing, yet, in that very month of August we find that 
the Trustees paid to R. M. Grant & Co. @ 11 1.74 for $17,000 
of borough of Avon-by-the-Sea 5 per cent, funding bonds. 

On September 17th, the bonds were approved by the Attorney- 
General, and on October 28th the Board resolved to increase the 
interest to 6 per cent, and to issue the bonds as of November ist. 
Inasmuch as no bids were received as a result of advertising, 
the Board, at the suggestion of the Clerk, Mr. Maehrlein, con- 
cluded that each member should try to obtain private bids. In 
November, 1907, W. J. Hayes & Sons offered par for the bonds. 
No attempt seems to have been made .to sell to the Trustees and 
no attempt to buy the whole or any part seems to have been 
made by the Trustees. In November, 1907, the very month 
when Hayes offered to pay par for the West New York 6 per 
cent, bonds, which offer the West New York Board resolved 
on November nth to accept, we find that the Trustees purchased 
three lots of bonds, to wit: $i3,5cx> of Little Ferry 6 per cent, 
bonds from R. M. Grant & Co. @ no, and $16,000 Matawan 
5 per cent, school bonds @ 103.56, and $15,000 borough of High- 
lands 5 per cent, water bonds @ 106.50, from The Merchants 
National Bank of Newark, which credited the proceeds to Mr. 
Howard Stokes. The Little Ferry bonds were dated June 5, 
1907, and paid for by the Trustees, November 12th. The Mata- 
wan bonds were dated November ist, 1907, and paid for Movem- 
ber 1 2th. The Highland water bonds were dated September 
2d, 1907, and paid for November 19th. 

In November, the West New York Board of Education ac- 
cepted the office of Hayes to purchase the bonds at par. In 
December the Board passed a resolution to the effect that as 



25 

W. J. Hayes & Sons were transacting business as bankers and 
brokers in the city of Cleveland, the purchase price of the bonds 
should be left on deposit with them, subject to the orders of the 
Board. The Board also resolved that no accrued interest should 
be demanded from Hayes, and authorized the President and the 
Clerk to enter into a contract with him in accordance with the 
resolutions. The negotiations for the sale to Hayes seem to 
have been carried on chiefly by Mr. Maehrlein. the Clerk of the 
Board. On December 30th, 1907, Mr. Hayes met the Clerk and 
the President of the Board in a hotel in New York City and 
produced, for their signature, bonds which he had caused to be 
prepared. For some reason which is not clear — owing chiefly 
to the fact that Mr. Maehrlein, who was examined, declined to 
answer, on the ground that he was under indictment — the seal 
was not affixed to the bonds. A trip tO' Boston on the midnight 
train was suggested, and Mr. Hayes and the President of the 
Board and Mr. Maehrlein took that train to Boston, taking the 
seal with them. The following day, December 31st, the bonds 
were sealed and delivered to Mr. Hayes at his Boston office. 
There is some suggestion that, at the time of their surrender, 
$5,000 was paid by Mr. Hayes. The President of the Board 
testified that Mr. Maehrlein informed him that he had received 
$5,000, but that he had returned it. Whether Mr. Maehrlein 
actually received $5,000 and whether, if he did receive it, he 
returned it, has not been made clear, owing chiefly to his refusal 
to answer questions on the ground that he was under indictment. 
Oine thing is clear, the Board of Education of the Town of West 
New York never received any money for the $105,000 of bonds. 
In May, 1908, they retained counsel to institute proceedings 
for the recovery of the purchase price of the bonds, or in lieu 
thereof, for the recovery of the bonds. As a result of the efforts 
of counsel, thirty-eight (38) bonds were recovered. vSo far as 
the Committee could discover, there are outstanding $67,000 of 
bonds, presumably in the hands of bona fide purchasers for 
value. The Board of Education of West New York has ex- 
pended thousands of dollars in its efforts to recover the bonds 
or their value, and in addition to the outlay of such money, is 
confronted with the possibility, if not the probability, of having 



26 

to pay $67,000 of bonds and of having nothing whatsoever to 
show therefor. Some of the members were indicted, but so far 
as the Committee, has been able to learn, no one of them has ever 
been tried. 

It is unfortunate that the people of V\'est New Yorjc will 
sustain the loss of at least $70,000 because of the actions of the 
members of the Board whom they elected. 

Seventh Recommendation. No school bonds should be 
sold at private sale unless they have been first offered to the 
Trustees of the School Fund. The Trustees should not be per- 
mitted unthin one year after their refusal to buy directly from 
a district to purchase the ivhole or any part of the issue from 
brokers. No bonds shoidd be signed, sealed or delivered except 
zvithin the State. No bonds should be delivered to any pur- 
chaser other than the Trustees of the School Fund, except upon 
payment in cash or by certified check drawn to the order of Hie 
Custodian of School Moneys, for the full purchase price. 

In the city of Newark the Board of Education has been ad- 
vised that it cannot enter into contracts for the purchase of 
lands or for the erection and furnishing of school buildings 
unless the money to discharge the contracts is actually in hand. 
Such advice is followed, and as a result there had been accunui- 
lated in banks at the time of our investigation, $2,481,610.58. 
The difference betv^een the interest received on the proceeds of 
bonds and the interest paid on the bonds was a loss amounting to 
about $60,000. 

In every other district which we examined it was assumed that 
contracts might be entered into as soon as the appropriations 
were dul}- authorized and before the money had been actually 
raised. In a few districts complaints were made that boards 
liad made contracts before any appropriation had been made. 

Eighth Recommendation. The law should be made clear 
that no contracts shall be made before the money to meet them 
has been appropriated, but that they may be made at any time 
after the appropriation, even though the money appropriated has 
not actually been secured. 



27 



DEPOSIT OF DISTRICT SCHOOL MONEYS. 

In every school district where any considerable balance is 
maintained, interest is generally collected. In many, it is not 
uncommon for Boards to borrow at 6 per cent, for general pur- 
poses from a bank with wdiich the Board has a deposit of a 
building fund on which only 2 per cent, is allowed. In other 
words, we found frequent instances where banks were, in effect, 
loaning Boards their ow^n money and making a profit of 4 per 
cent, on the transaction. We think, especially in view of our 
recommendation for an early distribution of the Railroad Tax, 
that it would not be wise to allow a Board to use funds for any 
purpose other than those for which they were appropriated. If 
the State distributes funds as we recommend, it should rarely 
be necessary for the districts to borrow for current expenses. 
In all districts, the interest earned on deposits is credited to the 
schools. In one, however. West New York, one custodian re- 
tained all interest, giving as a reason that he could, if he so 
desired, keep all funds in his home, and that if, through keen 
business acumen, he deposited them with a bank which allowed 
interest, the fruits of his sagacity belonged to him. When, how- 
ever, he was confronted with the possibility of a resort to the 
courts, he refunded the interest which he had appropriated. 

In many of the larger districts, certain banks are selected in 
preference to others and such selection is not always based solely 
on business reasons. In Atlantic City, where a substantial bal- 
ance of general funds is at times carried, we found that a bank 
w^as selected as a depository, the President of which was also 
Vice-President of the Board, and that no interest was allowed 
upon balances. In many districts, particularly the smaller ones, 
wherein there are but few banks and in some only one, it is 
not uncommon for a member of the Board of Education to also 
be an officer or director of the bank with which the local school 
funds are deposited. In small districts where there is at times 
difficulty in securing men to devote time to the management of 
the schools, some of the best members of Boards would be dis- 
qualified if a law were enacted prohibiting deposits with any 
bank of which a member of the Board was an officer, director or 
stockholder. 



28 

Ninth recommendation. — In all districts no deposits should 
be made zvith any bank in excess of 33 >^ per cent, of its capital 
and surplus. Among Banks of equal strength, preference should 
be given to those zvhich will pay the best rate of interest. School 
moneys should be segregated and placed separate and apart from 
all other moneys. No funds should be deposited with any Bank 
of which the Custodian of School Moneys is an officer, director 
or stockholder. In cities, no funds shoidd be deposited zvith any 
bank of which either a member of the. Board or a member of the 
Board of School Estimate is an oMcer, director or stockholder. 

I.ANDS FOR SCHOOL PURPOSES. 

It was not possible for the Committee to examine every school 
district in the State. Judging- from those which were examined 
it is not uncommon in the purchase of land for Boards to be 
guided, not by the best interests of the schools, but by the desires 
of some member, or more frequently some one active in political 
life who desires to plunder the school fund. Men who acquire 
land for the purpose of reselling to a Board, which, at their 
request, will purchase at a price far in advance of the cost, are 
a disgrace to any community. That there are such men in the 
State admits of no doubt. That there are and have been Boards 
ready, willing and perhaps anxious to obey the order of a politi- 
can leader, or rather boss, is most unfortunate. That there are 
districts in which men are members of Boards, not because they 
are the best, but because they are the most acceptable to the 
political powers, is to us most disgraceful 

In one district the evidence seemed very clear that one mem- 
ber of the School Board exacted a promise of monev from an 
owner as a condition of a purchase by the Board. That at or 
after the purchase he received money seems also verv clear. 
Following the transaction there was some gossip, and one citi- 
zen did not refrain from speaking very bluntly. Imagine the 
calibre and character of a member who, instead of courting an 

investigation threatened, "You . why did you open 

your mouth about that place? If you don't shut up I'll shoot 
you down." And that member appears to have dominated the 



29 

Board and to have been one of the leading poHtical figures of 
the district. 

In another district there is a school site known and designated 
as the get-rich-quick school site. Bought by a well-known poli- 
ticial at $8,000, it was immediately resold by him to the Board 
at $13,700. 

In Atlantic City, serv^eral members of the Board acted as 
brokers in the sale of real estate to it. Naturally the higher the 
price paid by the Board, the higher the commissions. For ser- 
vices in and about the purchase O'f real estate and in other matters 
fees were paid to a lawyer in the office oi the Vice-President of 
the Board, some O'f which fees were actually traced into the bank 
account of a firm of which he was a m.ember. 

We will cite but another illustration of the practices in the 
purchase of land. 

In 1908 Henry Brill and his brothers and sisters owned a plot 
of ground in No-rth Bergen, consisting of about six acres, with 
a frO'ntage of about 375 feet on the Hudson County Boulevard. 
In or about the early part of June Mr. Brill entered intoi a con- 
tract with Mr. John J. McMahon for the sale of the property at 
$20,000, $10,000 in cash and $10,000 to be secured by mortgage. 
At the time, Mr. McMahon was the custodian of the school 
moneys of the district and coiitinued to be such for several years 
thereafter. On the 23d of June, 1908, a school election was held 
at which the Board was authorized to purchase, for $'10,800, 
eighteen lots described by certain numbers on "Map of Property 
of John Daly". Two hundred and eighty-three (283) votes were 
cast, i. e., about 10 per cent, oi the vote of the district. At the 
tim,e, John Daly did not have title to the property, the purchase 
of which the voters authorized. Mr. Brill did not even know at 
the time of the election and could not tell from the ballot that the 
eighteen lots were part of the tract that his family owned, and 
which he agreed to sell to Mr. McMahon. He knew of no prop- 
erty in the district owned by John Daly, in fact he did not know 
• who Daly was. A week later, i. e., at the closing of the contract 
of sale, he learned, much to his surprise, that the John Daly 
property was part of the Brill ])roperty. McMahon did not take 
title in his own name. Title was taken in the name of one John 



30 

Daly, who executed a deed for eighteen lots near the rear of the 
plot to the Board of Education and a bond and mortgage on the 
balance of the property to the Brills in the sum of $10,000. The 
Board of Education borrowed $10,800 and drew a check for that 
amount to the order of John Daly. Daly endorsed the check to 
McMahon, who deposited it in his bank and with the proceeds 
paid the Brills. In short, the Board of Education paid $800 
more than was necessary to finance the transaction, and in addi- 
tion employed and paid the attorney who searched the title. It 
received eighteen of the worst lots. To those engaged in the 
transaction there was a profit of $800 in cash and 50 lots, includ- 
ing all on the Boulevard, subject, however, to amortgage of 
$10,000. Some tiuTC after, forty-six of the lots were deeded t» 
John J. McMahon, the custodian ; two to John Muller, the 
President of the Board, and one to Charles McElroy, the Clerk. 
It is true that the President and Clerk swore that they paid for 
the lots, but though afforded an opportunity they could not pro- 
duce any vouchers. 

The Committee subsequently discovered very suspicious cir- 
cumstances in connection with four other sales in the same dis- 
trict. Subpoenas were served on Mr. McMahon, who had admitted 
some connection with the transactions, and. also upon the members 
of the Board. All appeared by coimsel and declined to give any 
further information. The entire matter was called to the atten- 
tion oi the prosecutor of Hudson county, as was also the scandal- 
ous state of affairs in Secaucus. School affairs were made the 
subject of a very vigorous charge to the Grand Jury by Mr. 
Justice Swayze. Indictments were found against two of the 
Secaucus Board, but upon a trial the jury disagreed and no con- 
victions resulted. The Attorney-General advised the Committee 
that a failure of witnesses tO' obey subpoenas duly issued by it 
was a misdemeanor. Inasmuch as there was some doubt as t* 
whether a quorum of the Committee consisted of a majority of 
the Senators and representatives of the State Board or of a 
majority of the Senators and the entire State Board of Educa- 
tion, a hearing was held at Trenton, at which a majority of the 
Senators and State Board was present. Mr. McMahon, the 
members of the North Bergen Board and some North Bergen 



31 

contractors had been subpoenaed to attend. They did not attend. 
The facts were duly presented to the Mercer County Grand Jury, 
but no indictment was found. In Hudson county it was openly 
suggested that no redress would be found by a resort to criminal 
proceedings. It was also hinted that the political influence, 
though of a different complexion from that of the dominant 
party in Mercer, wo-uld malce itself felt even in Trenton. We do 
not know to what extent, if any, personal or political influence 
balked our attempts to have the laws enforced. We have learned 
by actual experience that laws are of no avail unless enforced. 
Far better laws by Lucifer to be enforced by Gabriel than laws by 
Gabriel to be enforced by Lucifer. We know of no better service 
that this Senate can render than to advise with the Governor so 
as to bring about the appointment of honest, fearless and able 
pro^secutors and the complete separation from politics of the 
selection of grand and petit jurors. We do not mean to suggest 
that the prosecutors of Mercer and Hudson counties did not try 
to help the Committee. While prosecutors can do but little, if 
grand juries fail to act, still if throughout the State they would 
actively strive fo-r the complete elimination of influence from; our 
criminal proceedings, tliey would place the State under great 
obligations to them. This Committee has earnestly striven to 
uphold the dignity of the Senate. Its efforts have been without 
avail. It now remains for this Senate to determine whether it 
can and will uphold its own dignity. It is now up to- this Senate 
tO' determine whether the failure oi witnesses toi obey subpoenas 
duly issued by one of its committees is a contempt. If it is, then 
those guilty should be punished. If the Senate has no power 
to punish for contempt then a law should be forthwith enacted 
giving it such power, so that in the future committees will re- 
ceive the respect which is due the Senate. Aside from those who 
were under indictment, the Committee experienced no difficulty 
with witnesses except those of North Bergen, and strangely 
enough the broker, Mr. Howard Stokes, who absolutely refused 
to answer any questions about his purchases of school bonds of 
that and all other districts on the ground that the Committee 
could not exact infoiTnation from him about any school bonds 
other than those which were purchased by the Trustees of the 
School Fund. 



Though it has seemed to the Committee that neither a member 
of a Board nor its custodian could legally retain any profits 
made by them in their transactions for or with the Board, still 
we know of no attempt ever having been made to recover ill- 
gotten profits. Neither do we know of any case when an at- 
tempt has been made to hold a member of a Board liable for 
damages for wrongful or negligent conduct on his part. 

Tenth Recommendation. Every purchase of land should 
he reported to the State Board of Bducation within thirty (^o) 
days after it is completed. The report shoidd contain a de- 
scription of the property, its assessed value, the name of the 
vendor, the date when he became the owner, the price paid by 
him, and by the Board to him<, the name of the agent or broker 
in the transaction and the commission, if any, paid to him. 
Pozver should be given to the State Board to require the Board 
in any district to cotmnence a suit against one or more of its 
members, past or present, or against its custodian or one who 
zi'as its custodian, or against its clerk or one who was its clerk, 
to accoiint for and pay over any profits which he may have made 
by reason of his position, or to pay damages for his wrongful 
or negligent conduct. If any local Board fails within thirty 
days TO commence such a suit it should be the duty of the 
Attorney-General to commence suit for and in the name of the 
local Board. 

school buiedings. 

Tlie plans and specifications for school buildings are required 
by law to be submitted to the State Board for suggestion and 
criticism before they can be approved by any district Board of 
Education. The law also requires the State Superintendent to 
procure plans and specifications and full detailed working plans, 
which must be loaned to districts desiring them, but he has never 
been provided with funds sufficient for the performance of this 
duty. Many districts have expressed a desire to have such plans 
and specifications. Notwithstanding the law, there do not ap- 
pear to be complete sets of plans and specifications which can 



33 

be loaned to the districts. Each district prepares its own plans 
and specifications and submits them to the State Board for ap- 
proval. In several districts we found that the plans and specifi- 
cations which had been approved by the State Board had been 
departed from in A^ery important particulars in the actual con- 
struction of the building. What was worse, we found that 
such departures, in at least one district, were not authorized by 
the local Board, but rather were sanctioned by one or two of the 
more influential members. The result of such departures was 
that the school district was called upon to pay and did pay for 
a very inferior building the price of a very good building. Such 
practices should be stopped. Here, again, though the facts were 
generally known, we find apparent indifference on the part of 
the legal voters, and no attempt on the part of any taxpayers to 
ascertain if any^, members of the Board reaped any profit as a 
result of the changes. 

There is no sense in compelling the submission of the plans 
and specifications to the State Board if, after their approval, 
the local district can make such changes in them as it may 
please. 

Eleventh Recommendation. No departure from the plans 
and speciUcat'wns of any school building, after they have been 
approved by the State Board, should be legal unless sanctioned 
by the State Board. The State Architect should prepare stand- 
ard plans and specifications for i, 2, 4, 6, 8 and 12-room school 
buildings, and the State Superintendent should cause blue-prints 
to be made of such plans and loan them to districts upon appli- 
cation. 

In many districts we found very old buildings, some without 
adequate exits, many with ordinary wooden staircases, and many 
without any special provision in the event of fire. Throughout 
the State we found that fire drills are frequently held, but ex- 
perience shows that actual fire is likely to cause a panic, and 
that as many lives may be lost through a panic as by the flames. 

The Committee held sessions in buildings in which, it must 
confess, it would not care to be upon the top floor, should a 
3 



34 

fire actually break out. Many buildings are equipptd with fire- 
escapes of a kind which might be very satisfactory as a means 
of exit provided there was plenty of time to escape, and pro- 
vided that all the children realized that there was no need for 
haste. Some of the buildings and many of the fire-escapes seem 
to have been constructed in the belief that children would be 
just as calm and collected in trying to escape from the building 
in the event of fire as they are in fire drills. 

Fire-escapes should not differ materially in size of tread, step 
and pitch from the stairs to which the children are daily accus- 
tomed. What is more, they should be protected on the sides 
so tliat there will not be danger that children, especially the 
small ones, may fall through if there is any pushing or jamming. 
There are school buildings in this State which, in the opinion 
of the Committee, should be condemned. There are some fire- 
escapes which would probably be more dangerous if used thaw 
the stairs. 

Twelfth Recommendation. The State Board of Educa- 
tion should have authority to direct the State Architect to 
examine buildings, and should have authority after receipt of 
his report to direct the entire or partial abandonment of the\ 
building for school purposes or the making of such cJiangcs as 
to it may seem proper. No State school funds should he paid to 
a district until the order has been complied with. 

In some districts there are buildings which are really unsani- 
tary. We have in mind one, where some of the members of the 
local Board of Education admitted that they would not care to 
have their children as pupils in it. They disclaimed responsibil- 
ity for the condition because they said the people of the district 
were unwilling to expend money for a new school. There is 
no doubt but that there are many districts in the State where 
the people are very niggardly in their support of schools. 

The vState Board of Education has authority to compel dis- 
tricts to make all school buildings sanitarv and to direct the 
withholding of all State support until their orders have been 
complied with, but it has not had the means to ascertain what 
school buildings are unsanitary. 



In some districts we found that much money has been ex- 
pended in the construction of buildings on ornamental features. 
We doubt very much if in all districts as much would have beeii 
expended for such purposes if the legal voters took more interest 
in school affairs and exercised their right to vote at the school 
meetings. 

If any proof was needed that the affairs of some Boards are 
managed along political lines, the changes which are made in 
materialmen, mechanics and insurance agents whenever the 
political complexion of the Board changes, would furnish it. 
The purchase of material, the employment of mechanics and the 
distribution of insurance among agents seems to be considered 
in many districts as legitimate political patronage. In so many 
districts did we find members of Boards, or men connected with 
the local government, placing insurance upon school buildings 
and furniture, and thereby obtaining a commission, that it is 
difficult to single any few out by wav of illustration. In Atlantic 
City we found that a Board of Education, just before the expira- 
tion of its term, had directed the cancellation of all insurance 
and that new insurance be obtained for a term of years so that 
two of its members could derive a commission. In another 
district we found that policies were taken out only for one year 
and that the placing of insurance was distributed among agents 
in the different wards. If any more expensive system of ob- 
taining insurance could be devised it is not known to this Com- 
mittee. In strong contradistinction tO' this district, vv^e found 
a few where all property of the Board was scheduled and where 
competition was solicited with resultant saving. 

Thirteenth Recommendation. It should he made the duty 
of every district to schedtde all school property, to obtain in- 
surance covering a period of at least three years and to solicit 
bids and in all cities to advertise for bids. 

The Committee had hoped to be able to devise some plan 
whereby the State would create an insurance fund for the pro- 
tection of its own public buildings and of school buildings in 
the State. The finances at the present time are not such as to 



36 

warrant the creation of such a fund, but we trust that the State 
Board of Education will bear the matter in mind and possibly 
at some time in the future we will see such a fund created. We 
know that its establishment on a sound basis would bring about 
a saving- amounting to many thousands of dollars each year. 

In some districts we found that care had not been exercised in 
the selection of architects, and, as a result, some buildings are 
not what they ought to be. In some we found the heating and 
ventilating planned by men who were incompetent for such 
work, and that thousands of dollars have been wasted. In one, 
we found a school with eleven separate furnaces. 

Fourteenth Recommendation. The State Board of Bdw- 
cation should he authorized to appoint an Inspector of Buildings 
at a salary not to exceed $2,000. Such Inspector should spend- 
all his time during the entire tzuelve months in the year in visit- 
ing the schools in the State and in making a ihorotigh report 
with regard to each. No school buildings, two stories in height, 
with more than four rooms, should he erected in the future, un- 
less there are at least two stairways, one at each end or one at 
each side. All stairways and staircasing and all corridors should 
be fireproof. No btiildings three stories or more in height should 
he erected in the future unless it is fireproof throughout. Every 
building two stories or more in height, used for a school, should 
be equipped zvith fire-escapes leading to the ground, protected on 
the sides and corresponding in size of tread, step and pitch to 
ordinary school stairzvays. 

It shoidd he made the duty of every Board of Health in the 
State to examine at least once a year each school in the district 
throughout which its jurisdiction extends. Such examination 
should take place while the school is actually in session and with- 
out notice of any kind whatsoever to the school authorities. A 
detailed report should he Hied in the oifice of the Board of 
Health, and a copy sent to the State Board for each public 
school and for a private school to the authorities conducting it. 
The report should specify the changes or improvements, if any, 
to be made. Thirty days after such report is made, the Board 



37 



of Health should make another inspection zvhile the school is in 
session and zuithout notice, to ascertain if its recommendations 
have been complied zuith. Any inspector zvho fails to report an 
unsanitary condition in a school zuhich he has znsited should he 
deemed guilty of a misdemeanor. 



TK.XT-B(X)KS AND SUPPLIES. 

In every district which was visited we found evidence of the 
activity of the book-sellers. In some districts the same kind of 
books are used in all the schools. In some districts there ap- 
pears to be about as many different kinds of books as there are 
schools. The reason urged for such diversity is that it is advis- 
able for the principals and teachers to be satisfied with the books 
which they are using. 

We have been wholly unable to see why it would not be 
better for the children to have the books selected by the best 
educator in the district, rather than to have them dependent 
upon the whim of principals and teachers. It is bad enough 
when children move from one district tO' another to find that 
they cannot take up books which they had been using. It seems 
absurd, however, when they move from one section in a district 
to another, and are transferred to another school, that they must 
take up different books. 

We are not at all satisfied that the diversity in the books is 
caused solely by a desire of a principal or teacher to promote the 
best interests of the pupils. On the contrary, we feel that the 
diversity is caused in great measure, if not almost wholly, by 
book canvassers. We are disposed to believe that too much of 
the time of Superintendents, principals and teachers is taken up 
by the book dealers. 

We find that publishers send to some, if not to all, of the 
Superintendents in the State for information about the books 
which are being used, and for the names and addresses of the 
principals and teachers. 

One Superintendent admitted that shortly before our exami- 
nation of him he had given information to twenty different 



38 

publishers. To some publishers and employment agencies he 
had given the names and addresses of all his teachers. 

We have no recommendation as to what text-books should 
be used in the State. We have not even any suggestions to make 
upon the subject. We do believe, however, that the State Board 
of Education and the leading educators ought to try to deter- 
mine among themselves what are the best text-books, and come 
to some understanding upon the subject. It would certainly 
seem as though the leading educators of the State ought to 
be able to agree upon such matters. 

Apparently, according to the publishers, every new book that 
they produce is the best ever issued on the subject, and its 
selection in different districts seems to be dependent more upon 
the ability of the canvasser than upon its merits. 

In the great majority of districts supplies are purchased as a 
result of competitive bidding. In many of the districts, how- 
ever, supplies are purchased from local dealers, irrespective 
of the fact that better prices could probably be obtained else- 
where. In some districts it has been openly charged that very 
excessive prices were paid for supplies. Thus, the Board of 
Education in one district paid for certain items $1.50 instead of 
40 cents ; for another, 75 cents instead of 50 cents ; for another, 
$6.00 instead of $3.00. It was not at all uncommon to hnd sup- 
plies purchased at prices exceeding the rates given to any school 
district. In some districts the charge was even made, though 
not clearly substantiated, that the Board had paid for supplies 
which it never actually received. In one district the Supply Com- 
mittee was characterized as the "Supply Gang," and in that dis- 
trict it seems to have been the practice for years to pay about 
double the regular price for various supplies. On one occasion, 
when the Supervising Principal undertook to purchase supplies, 
he was asked b\- the dealer whether he wanted them the same as 
others which had been purchased. Upon answering in the affirm- 
ative, the dealer asked him if he wanted the commission of 10 
per cent. The Committee did not adduce any direct evidence 
that any member of a Board was ever paid a commission by any 
supply house. From the prices, however, which had been paid 



39 

in various districts, there is no doubt but that the members have 
not exercised the same care and caution in the purchase of sup- 
phes which they would have exercised if they were paying for 
them out of their own pockets. Neither is there any doubt but 
that in the selection of some of the local supply dealers political 
influence has played some part. 

Fifteenth Recommendation. The State Board should ap- 
point an Inspector of Accounts at a salary not to exceed tzuo 
fhousxind dollars per year. Such Inspector should spend all hi^ 
time during the entire tweh^e months in the year in the examina-< 
tion of the accounts of the several school districts. A uniform 
find simple system of bookkeeping should he devised for use and 
used in all school districts. 

MEDICAE EXAMINATION. 

Though it has been universally recognized that there is no 
greater blessing than a sound mind in a sound body, still, until 
within recent years, very little attention has been given to the 
physical condition of the children in the schools. In some few 
districts we find open hostility to any medical inspection. In 
the great majority, however, and more particularly in those 
where medical inspection has been fairly tried, we find that it is 
strongly approved. In the past, where a child has not progressed 
satisfactorily, blame has frequently been attached to the system, 
more frequently perhaps to the teacher. It does not seem to have 
occurred to the parents or to the public that possibly the condi- 
tion of the child was in great measure responsible for its ina- 
bility to make fair progress. Medical examination has been tried 
in very many districts in the State and to an extent which has 
enabled the Committee to form some opinion of its value. While 
it may seem surprising, still it is not open to dispute that at least 
one-half of the children have some defect of vision, or hearing 
or some trouble in breathing, or with their teeth, which affect' 
their ability to advance. It does not seem to be at all uncorrt 
mon for a child to be considered stupid and backward when, in 



40 

fact, it is retarded almost solely because of physical defects. In 
one district, where a careful examination was made, the hearing 
of 4 per cent, and the sight of 27 per cent, were defective. In 
that same district it was estimated that more than one-half the 
children had enlarged tonsils. In one industrial center among 
5,031 children who were examined, 855 had adenoids and 341 
had defective vision. In that district the Committee was greatly 
impressed by the fact that many parents were probably unable 
to bear the expense of an operation, and that there was no place 
where one could be performed without expense. We do not 
express any opinion as to whether operations are really neces- 
sary. The great majority of physicians, however, who were ex- 
amined by us, united in the opinion that in some, if not in many 
cases, adenoids should be removed. All, however, agree that 
where the use of glasses will improve vision tliev should ht pro- 
cured. Even more astonishing than the trouble with the eyes, 
ears and the throat are those relating to the teeth. In a district 
where the majority of parents can well afford to take not only 
ordinary, but the very best care of their children, an examina- 
tion revealed that only 37 per cent, had mouths in good condi- 
tion, that in the teeth of the 2,652 children who were examined 
there were 1,200 exposed nerves and almost 16,000 cavities, and 
that more than 2,000 teeth needed extraction. The result of the 
examination and of the recommendations which were made be- 
came apparent when, a year later, a second examination of 400 of 
the children was made. The number of mouths in good condi- 
tion among the 400 had increased 18 per cent., while the number 
of mouths in very poor condition had decreased 60 per cent. The 
number of cavities in permanent teeth were 20 p>er cent, and in 
temporaiy 23 per cent, less, while the number of teeth needing 
extraction were 75 per cent. less. 

It is needless to say that a child will advance more rapidly 
\vhen in good physical condition than ^vhen in poor. The people 
in adopting the Constitution made it the duty of the Legislature 
to provide for the maintenance and support of a thorough and 
efficient system of free public schools. If the system' is to be 
thorough and efficient, and if the best results are to be attained, 
some attention must be given to the physical side of the children. 



41 

There can be no doubt but that more time and energy are re- 
quired to teach children who are retarded by some physical defect 
than those who are not so affected. Some few witnesses sug- 
gested that all medical examination should be abolished. We 
cannot agree with any such recommendation. On the contrars^ 
we think that a medical examination of each child, at least once 
a year, is very reasonable and should be strictly enforced. We 
also think that the establishment o^f free clinics, includine: dental, 
for the treatment of children of the needy should be encouraged. 
Some objection has been raised on the ground that medical 
inspection is an interference with personal liberty. We do not 
suggest or advise that the medical examiners shall have any right 
to do more than to ascertain the physical condition of the children 
and to make recommendations. We believe that parents who 
realize that their children cannot make the most of their oppor- 
tunities if retarded by any physical defect, will welcome the 
recommendations and do their utmost tO' follow them'. 

THE STATE SYSTEM OF EDUCATION. 

One of the Superintendents was asked whether the system in 
each county was not what might be termed, in colloquial language, 
"go-as-you-please." - He replied that not only was that true of 
each county, but of each district in each county. Such would 
seem to be the fact. Each district in the State apparently desires 
to be absolutely independent and to pursue the tenor of its ways 
undisturbed by any outside influence. 

It is true that the various County Superintendents prescribe 
a course of study for the schools under their direction. Its adop- 
tion, however, is in reality dependent upon each locad Board of 
Education. 

It has been urged that a unifonn course of study would not be 
practicable throughout the State owing to the diversity which, 
exists in the needs of the different districts. We find, however. 
that not only is there no uniformity with regard to courses of 
study, but that there is also no unifo^rmity with regard to the 
principles determining promotions. In many districts pupils are 
advanced without examinations and solely upon their class stand- 



42 

ing, while in others the advancement of pupils is dependent in 
part upon class standing and in part upon examinations. 

In some districts admission to High School is dependent upon 
examination, while in others no examination of any kind is 
necessary. 

Some of the Superintendents have opposed examinations on 
the ground that children do not do themselves justice because 
they become nervous. We fear, ho\ve\er, that many of the 
Superintendents are opposed to examinations, not so much be- 
cause some of the cliildren may not do themselves justitc, but 
more particularly because they involve a little more work and 
also because they may lead to the discovery that the children are 
not making average progress and attaining the standard their 
superiors like to believe is achieved. 

We have heard no reason which convinced us that examina- 
tions ought to be dispensed with entirely in the pubHc schools. 
No one has suggested any substitute as a means to determine 
whether the Superintendents, principals and teachers are effi- 
cient, and whether the pupils are receiving a thorough, rather 
than a mere superficial training. 

It would seem as though in many districts the lines of least 
resistance are pursued. Superintendents are not as keen to dis- 
cover as they might be, whether the princi]>als are performing 
their duties ; neither are the principals as keen as they might be 
to determine whether the teachers are doing their utmost to 
advance the children. 

The little harm that may result from examinations, we think, 
are more than counterbalanced by the fact that children, if they 
knew that they had to take them, would study so as to remember, 
rather than study merely to pass the recitations the next day. 
Teachers, also, would be incited to better work, if they knew 
tliat there was a possibility of blame being attached to them, in 
the event of the failure of a large proportion of their classes. 

We are not at all satisfied that the system, which prevails in 
many parts of the State, was devised solely with the good of 
the pupils in view. In fact, the method of dealing with back- 
ward and defective children, hereinafter stated, impels us to the 
opposite view. The system, no doubt.- is conducive to the com- 



43 

fort and ease of mind of the Superintendents, principals and 
teachers. Children are sent to school to learn ; Superintendents, 
principals and teachers are employed to teach them, and to try- 
to make them learn. If examinations are to be done away 
with, some means must be adopted, sO' that the State can de- 
termine whether the children are learning, and whether those 
who are employed to teach them are performing their duty. 

Inasmuch as the education of the children is a State duty, and 
inasmuch as the people have charged the Legislature with the 
duty of providing a thorough and efficient system of education, 
there should be some means by which the State can determine 
whether or not a proper standard is being maintained. It is, 
perhaps, impracticable to establish a course of- study for the 
State. It would, perhaps, be unwise to make any hard and fast 
rules with regard to promotions. With but one exception, we 
are content to leave such matters to the State Board of Education. 

Sixteenth Recommendation. It should he charged with 
the duty of ascertaining zv^hether the system, of education in each 
district is thorough and eiUcient, and it shoidd have the power to 
direct that no State funds shall he paid to a district until its 
system is made so. 

The one exception that we have in mind is the graduation 
from our public schools and the admission to High Schools. 
The children in the public schools throughout the State should 
be. as nearly as possible,, on a par in essentials at the time of 
graduation. Every school district should be made to realize 
that, while it may exercise discretion as tO' the methods to be 
pursued, such methods must culminate so that in essential sub- 
jects which are taught everywhere, the children will be on a level 
with those of every other district. 

Seventeenth Recommendation. There should be a uni- 
form examination throughout the State for graduation from 
Grammar Schools, and for the admission to High Schools. Such 
examination shovld he confined to essentials, thai is, Arithmetic, 



44 

Writing, Spelling, English Grammar and Composition, History 
and Geography. The questions should be prepared by or under 
the direction of the State Board. The examinations should be 
open to all children of the State, whether they attend public 
schools or private schools. The times and places of holding 
them and the rules governing them should be prescribed by the 
State Board. The State Board should also designate the persons 
to conduct thou and shoidd have the pozver to direct Superin 
tendenis, principals and teachers of one district to conduct them 
in any other. 

We realize that a child may not pass a satisfactory examina- 
tion in one or more of the subjects, but we believe that the State 
Board can make equitable rules, prescribing either what general 
average must be attained or what average must be. attained in 
each subject, and possibly, in the latter event, providing for a 
re-examination at a later period. 

In view of the general desire expressed throughout the State, 
for an Inspector who will examine and criticize the different High 
Schools and point out wherein they are below the average and 
wherein improvements might be made, we cannot believe that 
there will be any serious opposition to a plan which will insure 
general uniformity of attainments in essentials at the time of 
the admission of the children. We are in sympathy with High 
School inspection and criticism. We would not approve it, how- 
ever, if we thought it would consist of perfunctory visits and 
general talk. 

Eighteenth Recommendation. There should be a High 
School Inspector, at a salary of $4,300 per annum, and his actual 
disbursements. He should be appointed by the State Board, and 
be subject to its orders and sxich rides as it may tnake. He 
should devote his entire time to inspection. He shoidd conduct 
tests of at least one-half hour each in at least three classes on 
each visit, and shoidd make a report to the State Board. 

We have no doubt but that the services of an Inspector will 
prove valuable to the State Board, and place it in a position to 



45 

determine to what extent, if any, our High Schools are mere 
preparatory schools for colleges. The High Schools should be 
conducted so as to afiford the greatest good to the greatest 
number, and too much time and expense should not be devoted 
solely for the benefit of the few who may wish to enter a college. 
The services of an Inspector will also enable the Board to de- 
termine whether there are, as is frequently charged, too' many 
small and weak High Schools. 

NiNSTEE^NTH Recommendation. A-o neiv High School 
should he established without the consent of the State Board. 
The State Board should have authority to direct the discontin- 
uance of any High School, zvhen in its opinion it is advisable. 
If districts cannot agree about rates of tuition iu High or Ele- 
mentary Schools, the State Board should have authority to fix 
the rate and to compel a district to receive pupils at such rate 
froifi other districts. 

It is well known that the great majority of children who at- 
tend school cannot possibly hope to earn their living in intellec- 
tual pursuits. In many districts we find that this fact is be- 
coming- more and more appreciated, and that manual, industrial 
and agricultural training is being given. In view of the fact 
that only 55^ per cent, of our children are in the High Schools, 
it has seemed to us that such training ought to commence almost 
with the school work. It is the children who never enter a 
High School and who, in fact, never complete the grammar 
course, who are most likely to engage in some industrial pursuit. 
It is they who would be most benefitted by manua,l and indus- 
trial training. 

In one district we find that a very large amount of money is 
being expended for a manual and industrial High School. We 
should have much preferred to have seen that amount of money 
expended on the development of manual and industrial training 
in the lower grades. 

The schools should be conducted upon the principle of the 
greatest good to the greatest number. It is the children who 
never reach the High School who are most in need of manual 



46 

and industrial training. The extension of such training- in the 
lower grades should be strongly encouraged. 

The State now contributes to industrial education an amount 
equal to the sum raised in each district for such purprise. not ex- 
ceeding, however, $5,000. During the last fiscal year $147,000 
was distributed. How it was spent the State does not know, as 
no means exist for ascertaining. We find that there is a general 
demand in the cities and large towns for industrial education and 
in the rural communities for agricultural education. The amount 
to be distributed by the State will undoubtedly increase from year 
to year. Under present conditions no branch of education is 
more important or more desirable. The State should see that it 
is thorough and efficient, and that moneys appropriated for the 
purpose are wisely expended. 

Twentieth Recommendaton. There should be an In- 
spector of Industrial Education, including agriculture, at a salary 
of $4,500 per annum and his actual disbursements. He s<hould 
be appointed by the State Board and be subject to its orders and- 
to such rides as it may make. He shoidd devote his entire time 
to inspection. 

Though all the educators agree that thirty-five pupils are about 
as many as any teacher can instruct, still we find that this num- 
ber is greatly exceeded in some of the districts. We see little 
sense in having classes with 60 or 70 children. The teachers are 
expected to train the children intellectually. When, however, 
they have very large classes, which are usually the lower grades, 
we cannot see how they can be expected to do more than to take 
care of the children during class hours. It is the duty of the 
State to educate the children, rather than to conduct nurseries. 

Twenty-first Recommend.\tion. We believe that a law 
shoidd be enacted prescribing a limit to the number of children 
to each teacher. The State should not contribute to any school 
district zvhich maintains classes consisting of more than forty-five 
(45) pupils. 



47 

BACKWARD AND DEFECTIVE CHILDREN. 

The Committee made special inquiry as to what provision, it 
any, is being made for backw^^rd and defective children. The 
slig-ht attention given to this class has led us to believe that many 
of O'ur schools are pursuing the lines of least resistance, and 
that but little attempt has been made by examinations or other- 
wise to ascertain the rate of progress of the pupils or the effi- 
ciency of the teachers. Many of the Superintendents who were 
examined seem to know little or nothing about such children and 
their needs, and very few have given the subject any serious con- 
sideration. That it is a most important one cannot be gainsaid. 
In our endeavors to ascertain what can be done for such chil- 
dren, and to what extent we have them among us, we visited the 
Training School at Vineland and examined Mr. Johnstone, the 
Superintendent, who is one of the best infonmed men upon the 
subject in the country. We also examined Dr. Henry H. God- 
dard, the physician in charge, and who, as a psychologist, we 
believe, ranks second to none. We also made special inquiry ia 
all school districts and more particularly in one where the matter 
has received careful consideration. We gave special attention to 
the exhaustive report of the Royal Commission on the care and 
control of the feeble-minded. To show the importance of the 
subject we cannot do' better than to quote briefly from it : 

"Of the gravity of the present state of things there is 
no doubt. The mass of facts that we have collected, the 
statement of our witnesses and our own personal visits 
and investigations, compel the conclusion that there are 
numbers of mentally defective persons whose training is 
neglected, over whom no sufficient control is exercised, 
and whose wayward and irresponsible lives are produc- 
tive of crime and misery, of much injury and mischief to 
themselves and to others, and of much continuous expen- 
diture wasteful to the community and to individual fami- 
lies. 

"We find a local and 'permissive' system of public edu- 
cation which is available, here and there, for a limited 



48 

section of mentally defective children, and which, even if 
it be useful during the years of training, is supplemented 
by no subesquent supervision and control, and is, in con- 
sequence, often misdirected and unserviceable. We find 
large numbers of persons who are committed to prisons 
for repeated offenses, which, being the manifestations of 
a permanent defect of mind, there is no hope of repress- 
ing, much less of stopping, bv sliort punitive sentences." 

* ;•; :ic :!-. * * :f: :ic ^ * * 

"These extracts from the reports of the Medical Inves- 
tigators are confirmed by much other evidence from both 
towns and rural districts. They indicate, we may repeat, 
evils of extreme gravity which require the speediest atten- 
tion. They refer, as has been said, chiefly to feeble- 
minded persons connected with no institutions and living 
in the local conditions and surroundings in which they 
have l^een brought up. Many of them no doubt remain 
with their families and are kindly treated. But very 
many are untrained and uncared for. Leading irregular 
and purposeless lives, they become entirely undisciplined 
and fall into vice and crime. And, except so far as the 
special classes the local education authorities may have, 
in a few places, met the need in some degree, there is no 
public organization to train them according to their ability, 
and to control and supervise them, especially in the early 
years of life, when most can be done to aid them effectu- 
ally. 

"This evidence suggests for our consideration as a main 
issue how far it is possible to create a system by which 
these mentally defective persons could at an early age be 
brought into touch with some friendly authority, trained, 
and, as far as need be, supervised during their lives, in 
co-operation with their relations, when that is to their 
advantage, or, when it is desirable, detained and treated 
in some measure as wards of the State. T'he evidence 
also suggests that as so many authorities are brought into 
contact with these persons — the Poor Law, prisons. 



49 

schools and the Hke — in some way a settled plan of action 
should be established between the various agencies, so that 
some one supervising authority should see that they did 
not pass from one authority or institution to another, 
helped or detained a little at each, but permanently cared 
for by none." 

Children who are mentally defective may be divided broadly 
into three classes : 

First. Those who are and who always will be unable to guard 
themselves against common physical dangers. 

Second. Those who are capable or who will become capable of 
guarding themselves against common physical dangers, but who 
will never be capable of earning their own living. 

Third. Those who may become capable of earning a living 
under favorable circumstances, but who will be incapable of com- 
peting on equal terms with their normal fellows or of managing 
themselves and their affairs with ordinary prudence. 

In the first class are the children whose mental development is 
arrested at or before they reach the age of two years. They are 
usually designated idiots, and, we believe, never find their way 
into the schools. 

In the second class are the children whose mental development 
is usually arrested before they attain the age of seven years. 
They are commonly designated imbeciles, and some are occasion- 
ally found in the schools. 

In the third class are the children who are usually called feeble- 
minded, and by many, morons. Many of such children are in 
the schools. 

It is impossible, however, to state exactly the number of 
mental defectives or even the proportion to the total population. 
From the examinations which have been made in Great Britain 
and in various districts in this country, it would seem as though 
the proportion ranges from one-half of i per cent, to 3 per cent. 
Some give the average as 2 per cent. Many of our superintend- 
ents expressed the opinion that 2 per cent, of their children were 
defective. Probably some point between i and 2 per cent, would 
be more nearlv correct. 



The first five grades of one school were examined by Dr. 
Goddard. Among 1,547 children he found 3 per cent, mentally- 
defective and 15 per cent, from two to three years below the aver- 
age. He testified that the 3 per cent, could receive proper train- 
ing and care only in a special training school, while for the 15 
per cent, he concluded that special classes were necessary. 

In another school district a careful examination was made by 
the school authorities, and among 20,000 children 2,000 were 
found who were either backward or defective. Twelve and 
seven-tenths per cent, of the 20,000 were three years or more 
and 4.8 per cent, four years or more below the normal. It is 
possible, and perhaps probable, that the mental development of 
children who are two or even three years below the normal has 
been only retarded rather than arrested. Among many, some 
physical defect is probably the cause of the retardation. This 
Committee hopes that by careful medical inspection such causes 
will be located. That the majority will yield to treatment there 
seems to be little doubt. Among others, the cause will be found 
to be protracted illness, absence from school and delay on the 
part of parents in sending them to school. Where, however, 
children are found years or more below the normal, it will 
usually be found that the mental development has been arrested 
and they never will be normal. 

In a few districts, special classes have been organized for 
backward and defective children, and also for those unfortunates 
who are totally blind. There is no means of telling how many 
of such children are out of school and receiving no training 
whatever, because of the fact that no school census is taken. 
In a great majority of the districts no special classes have been 
organized and children are promoted, irrespective of fitness, 
after they have spent two tenns in a grade. The result is that 
children much below the normal will be found in almost all 
grades. As Dr. Goddard testified, in the eighth grade children 
can be found who have only the mentality of the normal child 
of six. The theory of many of the Superintendents is that it is 
better to promote such children, even though they are totally 
unfit, because otherwise, they would probably be taken away 



CI 

from school. Practically, all agree that such children retard 
the entire class of which they are members. No- serious con- 
sideration seems to have been given to the fact that many 
classes are retarded by such children and that the promotion 
plan is really unjust to the normal child and to the teachers, 
nor does much study seem tO' have been given to the question as 
to whether such plan is fair even to the backward and defective 
children. There seems to be little doubt that so far as defective 
children are concerned the attempt to give them training in- 
tended for normal children is futile. Practically, all psycholo- 
gists agree that a defective cannot be made normal. Notwith- 
standing the plan adopted of promoting children who have 
spent two terms in a grade, many of the backward and defective 
children are taken from the schools by their parents and sent 
to work. It is not unusual for parents to conclude when they 
find that their child is not learning, to take him or her away 
from school. 

In the district where 2,ooO' among 20,000 children were found 
below the normal, a second examination was made after an 
interval of a year. On that second examination it was dis- 
covered that i,0OO' children had disappeared from the schools. 
There can be little doubt but that among the 1,000 there were 
many whO' were considered as stupid or dullards. 

At Vineland, one of the best Training Schools in this country 
is maintained for the care of defective children. In that school 
there were, at the time of our examination, 215 boys and 99 
girls who had been placed there under the State Laws. The 
discrepancy in the sex is no doubt caused by the fact that 
parents are more likely to keep their girls and try to take care 
of them than they are the boys, whom they find difficult to 
keep off the streets. We find that the Training School is 
crowded and that the parents of many children have made 
application for their admission, and that there is now a waiting 
list. 

In view of the fact, almost universally admitted, that many 
defectives, unable to compete with their normal fellows, take to 
criminal ways and practices, and that not only in justice to them, 
but also in justice to society, they should receive special train- 



52 

ing, so that they may become, to some extent, self-supporting, 
and so that they may not become a menance to society, we have 
reached the conclusion that the State has been derelict in its 
duty in regard to them. 

Twenty-second Recommendation. A school census should 
he taken in every district, by or under the direction of the local 
Board, at least once in every tzvo years. In everv district where 
there are ten or more children, three years or more helozu the 
normal, special classes should be organized. In every district 
where there are ten or more blind or deaf children, special 
classes for their training should he organised, to continue until 
such time as the State makes proper provision for them. The 
number of children in special classes should not exceed fifteen, 
and special attention should be given to their education along 
industrial lines. The Medical Examiner of the district shoidd 
examine the children in special clc^ses at least once in every 
three months. Power shoidd be given to the State Board of 
Education to prescribe the Binet or such other system as to it 
may seem advisable as a method to determine what children are 
three years or mere below the normal, and to organise special 
classes for children, in districts where there are less than ten 
three years or more below the normal, or less than ten blind or 
deaf children, and to apportion the expense equitably among the 
districts from which children attend. All special classes should 
be conducted in accordance unth such rules as the State Board 
of Education may enact. Five hundred dollars per year shoidd 
he apportioned from the State school moneys for the teachers of 
each special class. 

The taking of the school census and the organization of 
special classes will no doubt lead to the discovery of many 
children who should be placed in a school such as the Training 
School at Vineland. That school, however, is overcrowded, 
and some children are now awaiting admission to it. We have 
found that the State has appropriated to general purposes the 
interest upon the Railroad Tax which was allotted to the schools. 
The amount of interest so appropriated easily exceeded $50,000. 



53 

TwEiN fY-THiRD RECOMMENDATION. $^0,000 should be ap- 
propriated from the State Treasury to enable a committee of 
three, to he appointed by the Governor, to act without compensa- 
tion, and to arrange for the acquisition of land and the erection 
and furnishing of a building where children now awaiting ad- 
mission to the Training School can be cared for, and which will 
be large enough to make some provision for the future. Such 
committee should have power to arrange with the Training 
School at Vineland for the care of the children under present 
statutes and also for the leasing, if possible, of some part of its 
land for the erection of the building. 



We agree with the conclusion reached by the Royal Commis- 
sion, which examined the subject in Great Britain, that there 
should be some one supervising' authority in the State, so that 
children who are found to be backward ot defective will not 
pass from one authority to another, "helped or detained a little 
by each, but permanently cared for by none." The school 
authorities should have control over all children of school age 
in the State. It should not be within the power of parents or 
guardians to apply to any other than school authorities for leave 
to send their children to work. 



Twenty-fourth Recommendation. All laws permitting 
anyone other than school authorities to grant authorizations to 
parents or guardians to take their children from school and to 
send them to work, should be repealed. 



The very children who. in justice to themselves and to 
society, are the most in need of training, are frequently taken 
from the school. The school authorities are in the best position 
to know who such children are. Those who have knowledge of 
the child, and its abilities or defects, are the ones who should 
decide whether or not its school training should come to an end. 



54 

THE STATE BOARD AND STATE SUPERINTENDENT. 

The School Law provides that the general supervision and 
control of public instruction shall be vested in a State Board of 
Education, which shall consist of two members from each Con- 
gressional district, who shall not be members of the same politi- 
cal party, and who shall reside in the same county, except where 
a Congressional district shall lie wholly within one county. Tlie 
members are appointed by the Go\-ernor for a term of five years. 
They receive no compensation for their services. Tliey reside 
in different parts of the State and hold meetings at various 
times. They have never been provided with an office in the 
State House, and as a result they meet sometimes in Trenton, 
but frequently at other places in the State. Possibly, pirhaps 
probably, some of the members have displayed but little zc?I in 
the performance of their duties, and have been of little or no 
practical help to their associates. We find, however, that the 
majority of the Board is composed of men who have done their 
best to promote the interests of the schools in the State. The 
Senators who are members of this Committee desire to have it 
recorded that the three members designated by the Board to 
act with them have, at considerable personal sacrifice, attended 
many of the meetings, and have done their utmost to help to 
ascertain the evils in our school system and to suggest remedies 
for them. 

The members of the Board are not professional educators. 
They are drawn from all walks of life, and even though tney 
liad absolute control over the school system of the State, it would 
perhaps be but natural for some local Boards to maintain that 
they knew as much about education, and for Superintendents 
and Principals to urge that they knew more and that they v/ere 
better qualified to advise their local Boards than the State Board 
was. The State Board, however, far from having absolute con- 
trol over the schools, has, in fact, but little authority. Apparently 
given general supervision and control, still we find tlic power of 
local Boards so complete that the question naturally arises, W hat 
can the State Board do? Owing to lack of authority on the 
part of the State Board, to the neglect of the Legislature to 



55 

provide it with adequate help to try to exercise supervision and 
to the indilTerence of voters, local Boards in many districts have 
paid but little attention to the law or to anything other than 
their selfish desires. 

The evils which we found so prevalent throughout the State 
and the entire lack of cohesion are a sad commentary upon our 
school system. 

Dependent upon that system for their education are 430,000 
children, for whom almost 13,000 teachers are employed. The 
current expenses for this school year will somewhat exceed 
$12,000,000, of which amount $7,988,570.85 is provided by the 
State. The balance has been raised by local taxation, collected 
under existing statutes. Aside from this vast amount, millions 
also raised directly by the districts will be expended in new 
buildings and in improvements upon present school properties, 
the value of which is now approximately $37,000,000. Though 
the State now pays for the education of the children almost 
two-thirds ( % ) of the current expenses we find that the Legis- 
lature has neglected to do what common prudence would seem 
to dictate. Charged with the duty of providing a thorough and 
efficient system of education, it has been generous in the distri- 
bution of funds, but sadly remiss in providing ways and means 
for determining whether or not the money is wisely expended 
and whether or not the system is thorough and efficient in every 
district. As a result, negligence and dishonesty are rampant 
in some districts, while from an educational standpoint some 
districts are most excellent, others, if not the opposite, at least are 
not what they should be. 

It is true that the law provides for the appointment of a State 
Superintendent and an Assistant State Superintendent. The 
men who occupy these positions have co-operated with the State 
Board of Education to the best of their ability. They have also 
co-operated with this Committee; in fact at the suggestion of 
Mr. Baxter, the State Superintendent, Mr. Betts, liis assistant, 
attended the sessions of the Committee and sacrificed his vaca- 
tion last summer in his endeavors to afford every possible help- 
His assisstance has been most invaluable, and we hope that for 
many years the State will continue to enjoy the benefit of his 



56 

services as well as those of the Superintendent. No men could 
have done better under existing conditions, and we consider their 
knowledge and experience as the most valuable asset of the State 
School System. 

Under the present laws and practices, however, we find that 
notwithstanding the earnest efforts of the Superintendent and his 
assistant the office is little mere than a bureau for gathering 
statistics, imparting information and deciding controversies 
which arise under the school law s and under the rules and regula- 
tions of the State Board. 

The people, in adopting the Constitution, evidently were un- 
willing to run the risk of having in one section of the State an 
excellent system of education and in another none at all or a 
vei-y poor one. They contemplated that every child should have 
equal opportunities, and they made it the duty of the Legislature 
to provide a thorough and efficient system, not for any one 
community, but for the State. 

For two years we have studied the subject. We have con- 
sidered conditions not only in this State, but we have inquired 
into and discussed the plans pursued in other vStates. We have 
been led to the conclusion that if our system is to attain the 
highest standard of thoroughness and efficiency, it must be placed 
in charge of the best educator that can be found. 

Twenty-Fifth Recommendation. The State Board of Edu- 
cation should be abolished. The offices of State Superintendent 
and Assistant State Superintendent shoidd be abolished. The 
oiUce of a Commissioner of Education should be created. Such 
Commissioner should be selected zvithout regard to whether his 
place of residence is within or without the State of Nezv Jersey. 
He should be appointed by the Governor for a term of five years, 
commencing July ist, ipii, at an annual salary of about $10,000. 

It should be the duty of the Commissioner : 

1. To perform all duties now imposed on the State Board of 
Education and the State Superintendent. 

2. To designate one of his assistants to act as Inspector of 
High Schools, and to cause him' to devote his entire time, during 
school hours, to personal inspection. 



57 

3- To designate one of his assistants to act as Inspector oi 
elementary schools, and to cause him to devote his entire time, 
during school hours, to personal inspection. 

4. To designate one of his assistants to act as Inspector of 
Industrial Education, including agriculture, and to cause him to 
devote his entire time, during school hotn-s, to personal inspection. 

5. To hold meetings of City and County vSuperintendents at 
least once in each year for the discussion of school affairs and 
ways and means of promoting a thorough and efficient system of 
education. 

6. To prescribe the Binet or such other method as to him may 
seem best for use in ascertaining what children are three years 
or more below the normal. 

7. To designate an assistant to decide all controversies and 
disputes which may arise under the School laws or the rules and 
regulations of the Commissioner, subject, however, to the right 
of appeal to a tribunal of three to consist o^f the Commissionei 
and two citizens to be designated by the Governor for a term ol 
five years from July ist, 191 1. Such tribunal should be known 
as a Court of School Appeals. The members should serve with- 
out compensation, but should be allowed their actual disburse- 
ments. 

8. .To be one O'f the Trustees of the School Fund. 
The Commissioner should have the following powers : 

1. Those now exercised by the State Board of Education and 
the State Superintendent, and in addition, those which may be 
conferred upon them, or either of them, or upon him at this 
session of the Legislature. 

2. To appoint four assistants, each at an annual salary of 
$4,500, and to designate one of them to act in his place during 
his absence. 

3. To prescribe a minimum course of study for the elementary 
schools and for the High Schools or for either, if in his opinion 
it is advisable so to do. 

4. To prescribe rules for promotions in elementary schools and 
in High Schools, or in either, if in his opinion it is advisable 
so to do. 



5- To appoint a Supervising Principal over schools in two or 
more districts, whenever, in his opinion, it is advisable so to do, 
and to apportion the expense equitably among the districts. 

6. To compel the production at such time and place within the 
State as he may designate of any and all books, papers and 
vouchers in any way relating to schools, or to the receipt or 
disbursement of school moneys. To compel the attendance be- 
fore him or one of his assistants or inspectors at such time and 
place as he may designate of any member of a Board of Educa- 
tion or of any person in the employ of a Board of Education and 
to suspend from office any person refusing to attend or to sub- 
mit such books, papers and vouchers as he may have been di- 
rected to produce. 

7. To issue subpoenas compelling the attendance of witnesses 
and the production of books and papers in any part of the State 
before the Court of School Appeals or before him or any of his 
assistants. 

8. To direct the County Collector to withhold funds received 
by him from the State from any district that refuses or neglects 
to obey the law or his rules or directions. 

The Court of School Appeals, the Commissioner and each of 
his assistants should have authority to administer oaths, to ex- 
amine under oath witnesses in regard to any matter pertaining 
to the schools, and to . cause the examination to be reduced to 
writing. Any person who, having been sworn by the Court of 
School Appeals, the Commissioner or one of his assistants, wil- 
fully gives false testimony should be made guilty of perjury. 

We feel confident if the State secures the services of a Com- 
missioner, such as we believe can be obtained for the salary and 
term we have recommended, that he, with his four assistants and 
two inspectors, one of buildings and the other of accounts, can 
bring our School to the standard which by the Constitution it is 
made the duty of the Legislature to establish and maintain. 

COUNTY SUPERINTENDENTS. 

For each county the State Board of Education appoints a 
County Superintendent, who performs many clerical (kities, and 



59 

who is supposed to supervise the rural schools. He is required 
to visit each school subject to his supervision at least twice a 
year, and that is the average number of times that we find each 
school is visited. In some counties we find that the Superinten- 
dent, claiming that the salary of $2,000 per year is too low. 
tries to fill another position as Principal or as Supervising Prin- 
cipal in some local district. 

It seems to be, and in fact is, very evident that no one can do 
justice to both positions. In fact, we are satisfied that very few 
are able to do justice even to the position of County Superin- 
tendent, owing not to their lack of ability, but to the fact that it 
is impossible for one man to give any eflfective supervision to 
100 or more schools, even though in many there is but one 
teacher. We cannot believe that the Legislature ever contem- 
plated that a County Superintendent should devote only part of 
his time to his duties as such. 

In the rural communities we find that the teachers are poorly 
paid. Those of ability readily find more remunerative positions. 
The rural districts, consequently, have teachers who are not as 
experienced or as able as those in the cities, where better salaries 
are paid. Those in the cities also receive far more supervision 
and help. We are, therefore, forced to the conclusion that the 
districts where the most supervision and help are required are 
the districts which receive the least. 

Some of the rural communities, perhaps, cannot afford to 
increase salaries. Some, however, can, and we believe that if the 
citizens looked at the matter in the right spirit, they would see 
the advantage of trying to have a better grade of teachers. Some 
of the districts could undoubtedly improve their system if, instead 
of reducing the local tax for the last school year, they had main- 
tained it on a level with the preceding. Some by jointly em- 
ploying a Principal to supervise their schools could greatly pro- 
mote their efficiency. Many of them, however, are always seek- 
ing a way to decrease school expenses rather than means to 
advance their children. 

Because some of the districts are not as generous in the sup- 
port of the schools as they ought to be is no reason why the 



6o 

Legislature sliould neglect its duty to establish and maintain a 
thorough and efficient system. 

We find that considerable clerical work has been imposed upjon 
the County Superintendents. We also find that the salary of 
$2,000, paid for the services which they are expected to perform, 
is not a fair compensation. 

Twenty-Sixth Recommendation. Bach County Superin- 
tendent should be authorised and directed to employ a clerk to 
perform, so far as possible, all duties other than those of actual 
supervision. Such clerk should receive a salar^j of $600 a year. 

The Board of Freeholders in each county shoidd provide an 
office for the Superintendent. The County Superintendents 
should devote their entire time to their duties as such, and more 
particularly to those of supervisioi. and their salaries should bi 
increased to $^,000 per year. 

CITY SUPERINTENDENTS. 

Not only did we find the County Superintendents performing 
very much clerical work, but also City Superintendents. In 
some places City Superintendents are nothing but officemen. 
They rarely visit the schools for the purpose of observing class 
work and ascertaining personally whether principals are helping 
their teachers and whether teachers are competent. The City 
Boards of Education should relieve their Superintendents, so far 
as possible, from clerical work, and should insist that they per- 
sonally spend the greater part of their time in the schools observ- 
ing the work of the principals and the teachers. 

In some districts the educational policies are so different from 
those in others, and in fact from those which were pursued under 
the same Superintendents, but under different Boards, that we 
have been led to believe that they are not always such as profes- 
sional educators would select if left to their own judgment. No 
doubt manv members of Boards have excellent ideas about educa- 
tion, and more particularly about what is practical and useful. 
Where, however, they interfere in matters peculiarly \\nthin the 
province of educators, it would seem as though they are about as 



6i 

well qualified as the average patient or client who undertakes to 
dictate to his physician or lawyer. In the great majority of 
districts the Board usually relies upon the good judgment of its 
Superintendent, principals and teachers in educational matters. 
In a few, however, we fear that occasionally, for political or 
personal expediency, they have ignored such judgment and ex- 
perience. It is the hope of this Committee that a strong and able 
Commissioner of Education will strengthen the hands of those to 
whom teaching is a profession and ward off the suggestions of 
those of whom it may truly be said that a little learning is a 
dangerous thing when such suggestions do not accord with sound 
judgment and more especially when thc)^ are prompted by ulterior 
motives. 

LOCAL BOARDS OF EDUCATION. 

The average num'ber of members on each Board is nine. In 
cities of the first and second class this number does not appear 
toi be toO' large. In smaller districts we have been unable tO' see 
any necessity for so- many members. In some localities it is 
even difficult to get so many. That large Boards are not neces- 
sarv was made evident by the number of communities where the 
minority members were placed on committees with little or noth- 
ing tO' do and more particularh^ on comm.ittees that had nO' voice 
in expenditures or the employment of teachers or help of any 
kind. In some sections minority miembers invariably could be 
found on the Library Committee. The very fact that there was a 
minority led us to inquire what it meant, and we were frequently 
informed that it was a Board divided along political lines and 
that the members of the dominant party controlled all expendi- 
tures and the selection of those to whom contracts or work of any 
kind was awai»ded. Sometimes we found the critics and those 
who believed in pursuing strict business methoids upon the Li- 
brary Committee and from; them we frequently obtained light as 
to how school afTairs could be and were managed on other than 
a business basis. The larger the Board the more difficult it is to 
place responsibility for improper practices. We belie\'e that more 
ef^cient work can and will be done bv small Boards. We also 



62 

believe that the fewer there are to shoulder responsibility for im- 
proper conduct, the less likely it is to occur. 

Twenty-seventh Recommendation. In cities the number 
of meinhers should be seven, and in all other districts five. The 
meetings of all Boards should be open to the public. 

Not only did we find Boards divided along political lines, but 
we found members frank enough to admit that thev expended 
money to be elected. \\'hat can be expected from such members ? 
One did not hesitate to say that this Committee had no right to 
expect and should not expect very high standards of honesty. 

One Board did not hesitate to spread on the minutes, in ac- 
cordance with custom, that gold-mounted fountain pens for the 
members had been bought and paid for out of the school funds. 
In some districts the expenses of attending the funerals of de- 
ceased members are likewise paid for from the School treasury. 
In one it was recorded in the minutes that expenses for coach 
hire and flowers should be incurred and paid out of the children's 
picnic fund. Such incidents are some indication of the type and 
character of men elected in some districts to care for the educa- 
tion of our children. 

That membership in a Board is sought by some for profit and 
by others for the patronage which it is possible to distribute, 
usually at the expense of the schools, would seem to admit of 
but little doubt. That political contributions are made in some 
districts by clerks, custodians, and even Superintendents has 
been established. That principals and janitors have been re- 
quested to pay for their appointments has also been shown. That 
in at least one district there was a schedule of prices to be paid 
by principals, teachers and janitors for appointments admits of 
no doubt. • 

In what amount the schools have been despoiled in the pur- 
chase of lands, the erection of buildings and purchases of every 
kind will ne\-er be known. What has been lost through negli- 
gence, through a failure to exercise ordinary business methods 
and through the so-called distribution of patronage to favorite 
brokers, dealers and contractors cannot be estimated. 



63 

TwENTY-KiGHTH RECOMMENDATION. Political contributions 
by any person engaged in any school system in the State and 
receiving a salary should not only he prohibited, but made a mis- 
demeanor. The Crimes Act should be amended so as to make 
it a misdemeanor for any member of a Board of School Esti- 
mate or of a Board of Education, any clerk, custodian, business 
manager, superintendent, principal, janitor or teacher to he 
pecuniar ily interested directly or indirectly over and above Jiis 
stipulated compensation, if any, in any transaction to zvhich any 
Board of Education is a party. 

Upon zuritten charges, against any member, secretary, clerk 
or custodian of a Board of Education, signed by one or more 
citizens, it shall be the duty of the Commissioner to cause the 
same to be investigated by the assistant designated by him to 
hear controversies arising under the school law. Such assistant 
shall report all evidence adduced before him, together zvith his 
recommendation to the Court of School Appeals, and such court, 
after affording all interested parties an opportunity to be heard, 
shall have pozver to remove from office the person against zvhom 
the charges zvere preferred or to make such dispositiojt as to thein 
may seem just. 

All employes of Boards of Education other than teachers zvho 
are nozu protected by a> tenure of service act should be made sub- 
ject to the Civil Service Lazv. 

It is easy to suggest statutes prohibiting unlawful practices. 
Oif what use are they if not enforced? In fact they are worse 
than none, because the failure to enforce law makes government 
a farce and an object of ridicule. Laws will not enforce them- 
selves. Honesty cannot be legislated into individuals. From 
our experience it would seem as though individuals with suffi- 
cient personal influence can ignore the law. If the dishonest 
could be kept out of our school system we would have little 
need for laws prohibiting corrupt practices, and the enforce- 
ment of such laws would give us no concern. How can such a 
result be attained? Many women have appeared before us and 
urged with vigor that they be afforded an opportunity to try to 



64 

bring it about. From aJl parts of the State women have 
petitioned us to recommend that they be g-iven the right to vote 
at all school elections and upon all school questions. We have 
been requested to recommend a joint resolution proposing an 
amendment to the Constitution to effect such result and a law- 
providing that where members are appointed, at least a certain 
proportion of them shall be women. 

We have concluded to recommend the joint resolution and 
an amendment to the law. In so doing we do not wish to be 
understood as expressing any opinion as to whether women 
should have a right to vote at any and all elections. We do 
express the opinion that they are as deeply interested in our 
school affairs as the men, and we do believe that they should 
have an equal voice, with men, in the selection of members of 
Boards and in the conduct of a system which is intended for 
the education of their children. Possibly only a small propor- 
tion of women will care to vote, even in school elections. Per- 
haps they Avill awaken interest among the men in the com- 
niunit}- and insist that they, too, should vote for members who 
can be trusted, and who will do their utmost to advance the 
schools rather than their own selfish interests. We have no 
doubt but that if all men would vote in school elections the char- 
acter of Boards would be greatly improved. The great majority 
of men, whatever may be their political beliefs, think that school 
affairs should be conducted, not on political lines, but on lines 
which will promote the efficiency of the system and the good of 
the pupils. In every district there are some worthy women 
interested in school affairs. We hope that they will awaken 
interest in school elections, and if they do, we believe that in the 
future better men will be elected to boards, and scandal and 
disreputable j)ractices will become as rare as they are now 
common. 



65 

TwENTY-XiNTH RECOMMENDATION, l^hc Legislature should 
adopt a concurrent resolution proposing an amendment to the 
Constitution zvhich zvill permit zvomen, to vote at any election 
for the purpose of choosing elective officers for School Boards. 
The lazv should he amended so that ziu'here members are appointed 
to constittite a Board of Education zjuomen shall be given repre- 
sentation upon it. 

There are many in the State who maintain that our school 
system now costs too much. Some of them, no doubt, will urge 
that the adoption of our recommendations will mean further 
expense. The increase, however, in our opinion, will be more 
than offset by the results. In interest alone there will be a saving 
to the districts of at least $100,000 before the end of the year. 
How much will be saved by the curbing of carelessness and dis- 
honesty and the promotion of strict business methods no one can 
tell. That the proper care and training of blind, backward and 
defective children will require additional expenditure we admit. 
Such expenditure has not been incurred in the past because we 
have all been sadly remiss, not only in our duty to such children, 
but to society. Payment of better salaries to teachers in the 
rural districts and to the County Superintendents, and the em- 
ployment of more principals will also involve more expense, but 
it should be incurred unless we are content not to afford the 
children in rural communities opportunities equal to those in the 
cities. 

The creation of the office of a Commissioner of Education, 
with his assistants and inspectors, to perform services which have 
never been performed by the State Board and Superintendent 
will require some additional outlay. The total expense of that 
office, however, will not equal one per cent, of the $8,000,000 the 
State is annually distributing, and who can say that the State 
should not spend one per cent, for the purpose of ascertaining 
whether its money is wisely disbursed and for the added pur- 
pose of promoting a thorough and efficient system of education 
in everv district in the State ? 



66 

In conclusion, we do not wish any one to infer that in no dis- 
trict is there a thorough, efficient and honest system of educa- 
tion. On the contrary, we found many, and, with them before 
us as standards, we made the foregoing recommendations. 
Dated March, 191 1. 

JOSEPH S. FRELINGHUYSEN, 
WILLIAM J. BRADLEY, 
GEORGE S. SILZER, 
WILLIAM G. SCHAUFFLER. 



I assent to all the recommendations except the Twenty-fifth. 
I do not agree tO' it because I believe that the State Board is effi- 
cient, and because I feel that if it has the powers proposed in 
the other recommendations, it will be able to administer the school 
affairs of the State as well, if not better, than a Commissioner, 
as suggested in the recommendation. 

WM. H. MORROW, 
S. St. J. McCUTCHEN. 



67 



The Committee is constrainecj, to record its tribute to the effi- 
ciency and power of Mr. John P. Murray, its counsel. His com- 
plete draft of the scope of the laws governing the educational 
system of the State ; his comprehensioii of the condition ; his 
keen analysis of these conditions, and of motives and practices 
have been oi incalculable value to- your Committee. He has been 
able to suggest lines of inquiry which were not present in the 
minds of members of the Committee, whO' for years have been 
intimately connected with the educational work of the State ; he 
has been invariably patient and courteous, but persistent. The 
value of his services to the Committee and to the S-tate cannot 
be measured b}^ anv approprianon which may be made by the 
State to him. 

JOSEPH S. FRELINGHUYSEN, 
WILLIAM J. BRADLEY, 
GEORGE S. SILZER, 
WILLIAM G. SCHAUFFLER, 
WM. H. MORROW, 
S. St. J. McCUTCHEN, 

Coriiniittcc. 



^ 



LE M 'II 



REPORT 



Senate Committee to Investigate the 

IVIethods and Practices, Expenses 

and Disbursements of the 

Public Schools 



MARCH, 1911 



TRF.NTON, N. J. 
MacCbeulish & QuiCLEv. State Printers. 

igi I. 



